European stocks open lower ahead of ECB meeting

European markets opened slightly lower Thursday ahead of a monetary policy decision by the European Central Bank (ECB).

The pan-European STOXX 600 was around 0.3 percent lower with all major European indices in the red.

Investors appear to be pausing ahead of an ECB governing council meeting on Thursday. The meeting, which is being held in Malta rather than Frankfurt this month, is expected to focus on whether the bank needs to increase its 1 trillion euro ($1.1 trillion) bond-buying program designed to fuel inflation and growth. The bank announces its interest rate decision at 12:45p.m. London time.

The bank is expected to hold fire on any additional stimulus this month, however, despite the euro zone being falling back into deflation territory in September.

“We expect the tone dominating this meeting will be one of ‘wait and see,’ with some dovish communication during the press conference reminding the markets of the ECB’s intention to do whatever it takes to support the euro and stave off deflation,” Vincent Juvyns, global market strategist at JPMorgan Asset Management, said in a note.

A flood of earnings has also been announced. Danish enzyme maker Novozymes saw shares 1.5 percent higher after reporting third quarter earnings that were slightly higher than analyst expectations but narrowed its organic sales growth guidance for the year.

France’s Eurotunnel said that third-quarter revenue rose 3 percent to 334.4 million euros ($379.48 million) but the Channel Tunnel operator said it saw rail freight tonnage fall, which it blamed on disruption from the migrant crisis in Calais. Shares were mildly lower as a result.

Sticking with French companies, telecoms operator Orange saw a rise in third quarter revenue and raised its profit target for the year, sending shares up over 3 percent.

Meanwhile, Publicis shares tanked over 7 percent after it cut its full year sales growth outlook to 1 percent from 2.5 percent citing customers cutting or delaying marketing projects.

French spirits maker Pernod Ricard said overall sales in its fiscal first quarter rose 3 percent year-on-year, but sales fell 9 percent in China in the period. Still, shares reacted positively.

Elsewhere, Dutch chemicals maker AkzoNobel was 1 percent higher after reporting core earnings up 21 percent year-on-year in the third quarter of the year, with the company citing continued cost savings and favorable currency developments for the rise.

Swiss drug maker Roche said nine-month sales rose 2 percent to 35.53 billion Swiss francs ($37.02 billion), higher than analysts’ expectations and upped its full-year sales growth expectations. Shares were slightly higher.

In the auto space, German carmaker Daimler reported earnings before interest and tax (EBIT) rose 31 percent year-on-year to 3.66 billion euros helped by Western Europe and China, sending shares 1.4 percent lower.

And mining group Anglo American reported a mixed production report on Thursday, but notably said it lowered its diamond production “to better reflect current trading conditions”, sending shares over 3.4 percent lower.

Shares in Britain’s Travis Perkins fell 7 percent. The owner of DIY chain store Wickes, said full-year earnings would be at the lower end of expectations due to recent market weakness.

Other news which has dampened sentiment came from U.S. bank Citi on Wednesday. The bank cut its global economic growth forecast for 2016 for the fifth consecutive month, lowering its call on next year’s world expansion to 2.8 percent from 2.9 percent, Reuters reported.

But a bright spot came from Spain where the unemployment rate in the third quarter fell to 21.18 percent, its lowest in four years.

In the U.K., Bank of England Governor Mark Carney delivered an upbeat assessment of Britain’s membership of the European Union on Wednesday but he warned of potential pitfalls, as the country prepares to vote on membership of the single market.

Source: CNBC