European stocks are stable. Investors are waiting for the European Central Bank meeting scheduled for Thursday. According to most economists, the ECB will announce the extension of the asset purchase program at the same rate – about € 80 billion per month. On the issue of the timing opinions vary, but it is assumed that the head of the ECB Mario Draghi will extend the program for at least six months.
The focus of investors were data for the euro area. In the eurozone, growth has stabilized, as originally anticipated in the third quarter, it showed on Tuesday Eurostat data. Gross domestic product expanded 0.3 percent in the third quarter, showing the same growth rate as in the second quarter. In annual terms, GDP growth was steady at 1.7 percent. However, the rate was revised from a preliminary assessment of 1.6 percent.
GDP showed that sequential growth in household spending and government spending improved slightly to 0.3 percent and 0.5 percent, respectively. At the same time, gross fixed capital formation growth slowed to 0.2 percent from 1.2 percent. Household spending had a positive contribution to economic growth, while investments were neutral. Exports rose 0.1 percent, while imports rose by 0.2 percent. As a consequence, the contribution of foreign trade to GDP growth was negative.
The composite index of the largest companies in the region Stoxx Europe 600 rose 0.2% to 341.92 points.
The market value of Banca Monte dei Paschi di Siena, the third in terms of assets in Italy fell by 3.1%. The bank, which is experiencing significant difficulties, may be nationalized.
However, Banco Popolare SC and UniCredit shares rose 2.3% on expectations that the effects of the referendum and a change of government in the country will not be as painful for the financial industry, as expected.
Prices of mining corporations BHP Billiton and Rio Tinto fell in London trading 2.1% and 1.2%.
IG Group shares fell more than 20% due to the tightening of the rules of trade in certain derivatives in the UK.
At the moment:
FTSE 6734.26 -12.57 -0.19%
DAX 10695.10 10.27 0.10%
CAC 4585.72 11.40 0.25%
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