Europe open: Stocks rally ahead of Eurozone inflation figures
European stocks advanced ahead of the release of figures which are expected to show the Eurozone entered further into deflation in January.
Eurostat figures are forecast to show Eurozone consumer prices fell 0.5% year-on-year in January after declining 0.2% a month earlier. It comes after a report revealed German consumer prices dropped 0.3% in January, more than the 0.1% fall that was expected and compared to the prior month’s 0.2% gain.
Depressed oil prices have dragged consumer prices lower across the globe. Oil prices have fallen by almost 60% since June due in part to the boom in US shale production.
Brent crude futures rose 0.16% to $49.21 per barrel in morning trade, according to the ICE.
The European Central Bank (ECB) this month announced a €60bn-a-month stimulus programme to help push inflation towards its target of just below 2%.
Elsewhere in the euro-area, the market is keeping a close watch on Greece as the newly elected government lays its plans of the debt-ridden nation.
European Parliament President Martin Schulz has said the Syriza party will seek common ground with its EU partners as it tries to renegotiate its financial bailout.
The euro rose 0.20% to $1.1343 in morning trade.
In the US, a report on gross domestic product (GDP) is expected to show economic growth slowed in the fourth quarter. Analysts predict GDP rose an annualised 3% compared to a 5% gain the previous quarter.
The US also sees the release of the University of Michigan’s consumer confidence index and personal consumption data.
Among companies, International Consolidated Airlines (IAG) climbed after Qatar Airways bought a 9.99% stake in the British Airways owner.
Salvatore Ferragamo SpA rallied after reporting 2014 sales growth excluding currency swings that beat analysts’ estimates.