European stocks were on the increase on Wednesday due to the upbeat EU companies full-year and 4th quarter performance forecasts. The market was additionally supported by investors that were reluctant to open short positions ahead of the ECB meeting scheduled for Thursday. The EUR/USD pair declined 0.20%. This week the pair was steady ahead of the EBC meeting where the decision on interest rate will be taken. The Euro STOXX 50 index edged up 0.55% and pan-European FTSEurofirst 300 index climbed 0.12% yesterday. Speaking of the national European indices performance, German DAX 30 fell 0.2%, French CAC 40 fell 0.5% and British FTSE 100 fell 0.3%. British chip designer, supplier of Apple Inc., ARM Holdings stocks jumped 7% on the news its third-quarter profit rose 27%. UK publisher Pearson saw its stocks plunging 13% on weak earnings outlook. Financial sector was in the red as well as several Swedish banks missed earnings expectations with Credit Suisse losing 4.5%. Today at 9:30 CET in Britain September retail sales year-over-year change was released, the reading is better than expected. Today at 12:45 CET in Eurozone the ECB will announce the decision on the rate, it is expected to remain unchanged at 0.5%. At 15:00 CET the August eurozone consumer confidence will be released, the tentative outlook is negative.
On Wednesday Japan’s Nikkei 225 index climbed almost 2% on the prospect of further monetary easing by the Bank of Japan after the data on the slowest increase in exports in over a year made investors concerned about possible recession. The USD/JPY pair lost some ground falling 0.16%. Chinese stocks closed 3% lower which is the record decline since mid-September fuelling worries about the Chinese economy strength. Tomorrow at 2:35 CET the Nikkei Japan Manufacturing PMI will be released, the tentative outlook is negative.
Brent crude oil price fell 1.8% on Wednesday having touched the lowest level in 14 days at $47.50. The US oil futures for December hit a 3-week low of $44.86. Yesterday the US Department of Energy Information Administration data showed a sharp rise of 8mln barrels in US crude stockpiles in the week to October 16.
Gold slid almost 1.0% down as investors were closing long positions. The US December gold futures lost 0.9% to $1167.1 a troy ounce.
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