European stocks ended higher on Wednesday supported by dovish comments of European Central Bank President Mario Draghi that policymakers were ready to expand the monetary stimulus program in December if needed. The euro weakened against the dollar hitting 3-month low. The Stoxx Europe 600 index rose 0.5%. Germany’s DAX 30 index underperformed again and fell 1% as Volkswagen shares tumbled 9.5% after the car maker announced it found faulty emissions readings in gasoline-powered vehicles also. Analysts note that corporate earnings reports are mixed with 55% of STOXX Europe 600 companies having reported earnings so far this quarter, of which 49% have beaten or met expectations, with 51% missing forecasts. Today German factory orders for September came in lower than expected, showing 1% contraction year-on-year not-seasonally-adjusted following a 1.7% rise in August. Today at 10:00 CET the European Central Bank publishes the monthly Economic Bulletin. At 10:10 CET October Retail PMIs will be released for Germany, France and euro-zone. At 11:00 CET September Retail Sales will be published in euro-zone. The tentative outlook is positive. At the same time the European Commission releases Economic Forecasts for member states over the next 2 years. And at 11:45 CET ECB President Draghi speaks in Milan.
Nikkei gained 1% toady and closed near 10-week high as investors bought exporter shares on anticipation of earnings boost from weaker yen and market sentiment was bolstered by positive corporate reports.
Oil futures prices are edging up after falling 4% on Wednesday on rising US crude inventories.
Gold for December delivery is gaining today after falling 0.7% on Wednesday as bullish comments by Fed Chair Yellen pointed to increased likelihood of interest rate hike in December and blunted the demand for the safe haven metal.
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