European equity markets have opened in the green on Tuesday, as investors look toward Thursday’s meeting of European Central Bank policymakers to signal fresh stimulus for the region’s stuttering recovery, reports FTAdviser sister title FastFT.
With little data outside eurozone producer prices to be released this morning, Monday’s alarmingly weak European manufacturing activity data increased expectations that the ECB could this week confirm that it will launch a programme of bond-buying to aid ailing eurozone economies.
The closely watched manufacturing purchasing managers’ indices compiled by Markit Economics slipped to a 15-month low in France, a 14-month low in Italy and an 11-month low in Germany.
Said Hans Redeker, of Morgan Stanley: “We continue to suggest some caution this week ahead of the ECB meeting, given the extent to which market expectations have been built for further policy action at Thursday’s meeting.
“The weakness in the eurozone indicators is particularly significant, given the building expectations for further ECB policy action, and adds to the more medium-term bearish picture currently developing for the euro,” he added.
Here’s how the main indices currently stand:
The FTSE Eurofirst 300 is up 0.25 per cent or 3.5 points at 1,380 points.
The FTSE 100 in London is up 0.3 per cent or 20 points at 6,845.
The Xetra Dax in Frankfurt is up 0.7 per cent or 67 points at 9,546.
The CAC 40 in Paris is up 0.3 per cent or 12 points at 4,392.
