European stocks advanced for the second consecutive session on Tuesday supported by expectations of additional stimulus by the European Central Bank. The euro declined, hitting a seven month low against the dollar. The Stoxx Europe 600 rallied 2.9%, and Germany's Dax 30 index added 2.4% as exporters gained, benefiting from weaker euro which makes euro-zone exports more competitive. ECB chief economist Peter Praet said the central bank would consider whether there is a need for additional monetary stimulus given low inflation pressures in medium term and heightened uncertainty. The news that Greece reached a deal with its international lenders on home foreclosures reform that will allow to start receiving funds from the bailout loan was another positive factor. In economic news ZEW survey from Germany showed economic sentiment improved in November after declining for seven straight months. Today at 11:00 CET September construction output will be released in euro-zone.
Nikkei ended up 0.1% today with weaker yen supporting gains in exporters. Tomorrow at 03:00 CET Bank of Japan monetary policy statement will be released and Governor Kuroda will give a press conference.
Chinese stocks are falling today despite data showing Chinese home prices rose 0.1% for first time in over a year in October on an annual basis. Copper prices are falling on fears demand for the metal will continue falling with slowdown in China’s economic growth.
Oil futures prices are rising today after American Petroleum Institute report late Tuesday said US crude stockpiles fell unexpectedly last week by 482,000 barrels due partly to higher refinery runs. Prices fell yesterday on expectations the data would show US oil inventories rose for an eighth straight week. Today at 16:30 CET official data on US crude oil inventories will be released by the Energy Information Administration.
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