Europe midday: Stocks rise after BoJ stimulus increase, rise in Eurozone inflation
European stocks gained after the Bank of Japan (BoJ) unexpectedly boosted its stimulus and after Eurozone inflation rose in line with forecasts.
The BoJ lifted its annual target for monetary expansion to 80trn yen from a previous 60 to 70trn yen. The move came as Japan’s jobless rate rose to 3.6% in September from 3.5% the previous month, as expected.
Inflation in the world’s third largest economy fell to 3.2% in September from 3.3% the month earlier, which was also predicted by the market.
Eurozone inflation rose by 0.4% year-on-year in October, as expected, up from 0.3% the previous month. However, it remains below the European Central Bank’s target of just under 2%.
The unemployment rate in the euro-area held at 11.5%, meeting forecasts.
“With euro-zone HICP inflation still close to zero in October and the unemployment rate holding near a record high, there remains a significant risk of deflation in the single currency area,” Capital Economics warned.
In other euro-area news, German retail sales rose 2.3% year-on-year in September, following a 0.1% rise the prior month. Analysts had estimated a 1.2% gain.
The US will later see the release of personal spending and consumer confidence data.
Danone, BNP Paribas
Danone climbed after agreeing to buy a 25% stake in Yashili International Holdings, a Chinese infant milk-formula maker.
BNP Paribas gained after posting an 11% increase in third-quarter profit that beat analysts’ estimates.
Royal Bank of Scotland Group jumped after swinging to a third-quarter profit.
International Consolidated Airlines Group advanced as the owner of the British Airways and Iberia raised its full-year earnings guidance.
The euro fell 0.28% to $1.2578.
Brent crude futures dropped 1.07% to $85.32 per barrel, according to the ICE.