(MENAFN– ecpulse)
European stock markets opened higher Monday to kick-off a busy week that will see decisions by major central banks.
- Stoxx 600 gained 0.49 percent or 1.59 points to 323.09
The benchmark gauge climbed 0.4 percent last week on solid corporate results amid prospects of a rate cut by the European Central Bank on cooling inflation.
- Stoxx 50 gained 0.50% to 3067.35 . As of 03:08 a.m. EST.
Investors are looking ahead to a busy week of central bank meetings. The policy committees of the European Central Bank (ECB) and Bank of England meet on Thursday, while on Friday U.S. non-farm payrolls data is due. The data could indicate whether the U.S. economy is improving, and follows Friday`s better-than-expected manufacturing report.
There are expectations that the ECB could cut rates when it meets on Thursday , especially after a plunge in inflation to 0.7 percent on year in October, well below the bank`s target of just under 2 percent, in addition to a record unemployment rate, while a strong euro could hurt exports.
The ECB will announce its decision on interest rates on Thursday.
Corporate News
In earnings news, airline Ryanair also reports second quarter earnings on Monday.
Europe’s biggest discount airline said net income for the year-ended March 31 will be around 500 to 520 million euros, below prior forecasts that called profit of 570 million euros. This compares to 569 million euros last year.
The company had earlier cautioned it might be below that. Shares slumped 11 percent on Sept. 4, the day Ryanair first warned that profits might fall below guidance. The stock has gained 29 percent this year, valuing the carrier at 8.6 billion euros.
Meanwhile, HSBC bank reported Third-Quarter Pretax Profit jumped 30% to $4.53 Billion as the bank benefits from cost cuts and the absence of a big provision to cover a fine last year.
Swiss Company Dufry said nine-month sales jumped 14 percent to 2.69 billion Swiss francs ($3 billion), while earnings before interest, taxes, depreciation and amortization during the period also rose.
Growth Outlook
A group of business leaders in the U.K., the Confederation of British Industry raised its forecasts for economy growth and said the recovery will be buoyed by improving business investment and trade.
The group sees the economy expanding 1.4 percent this year and 2.4 percent in 2014, it said in a quarterly report. That’s up from 1.2 percent and 2.3 percent projected in August.
In the U.S., Federal Reserve Bank of Dallas President Richard Fisher said the U.S. central bank should end its record stimulus as soon as possible.
“At the earliest possible moment we need to focus on transitioning back to having an interest-rate-driven monetary policy,” Fisher said in Sydney today.
The Federal Reserve last week said it would maintain its $85 billion monthly bond purchasing scheme but it didn`t express concern, as it did in September, that higher mortgage rates could hold back hiring and economic growth.
Analysts see growth in the world’s biggest economy slowed last quarter to 2 percent from 2.5 percent in the previous three months. A preliminary reading for gross domestic product is due this week.
-The British FTSE 100 gained 0.50% or 33.78 points to 6768.52
-The French CAC 40 climbed 0.49% or 21.02 to 4294.21
-Frankfurt’s DAX 30 lost 0.48% or 42.87 points to 9050.70
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