European stocks headed for their highest level in almost seven years on optimism Mario Draghi will give more details about an expansion of the European Central Bank’s asset-purchase program.
The Stoxx Europe 600 Index climbed 0.2 percent to 349.98 at 10:10 a.m. in London for a third day of gains. A close at this level would be the highest since January 2008. The gauge has rallied 13 percent from a low in October as Draghi said the ECB may broaden its asset-purchase program to include government bonds, while central banks in China and Japan boosted stimulus.
“The assumption these days is that constantly disappointing
macro data in the euro-area makes the probability of Draghi doing something more likely,” Henrik Drusebjerg, who helps manage 14 billion euros ($17 billion) as chief strategist at Carnegie Investment Bank AB in Copenhagen. “My guess is that markets have maybe over interpreted that and expect more than they will get today.”
Draghi holds a press conference at 2:30 p.m. in Frankfurt, 45 minutes after the ECB announces official interest rates. None of the 54 economists in a Bloomberg News survey expects any change. Separately, the Bank of England will also leave interest rates at a record low, economists projected before a policy meeting at noon in London.
Standard & Poor’s 500 Index futures were little changed. A report at 8:30 a.m. in Washington that may show that fewer Americans filed for initial jobless claims in the week ended Nov. 29, according to the median estimate of economists surveyed by Bloomberg News.
Ryanair, EasyJet
An index of travel and leisure stocks was the best performer among 19 Stoxx 600 industry groups. Ryanair Holdings Plc, Europe’s biggest discount airline, jumped 8.3 percent after raising its annual profit forecast for the third time this year. EasyJet Plc, the second biggest, rose 2 percent after saying the number of passengers increased in November from a year earlier. TUI Travel Plc added 4 percent after reporting that full-year underlying operating profit increased.Unilever climbed 2.3 percent after saying it will separate its spreads business into a standalone unit. The maker of Dove soaps doesn’t plan to sell or spin off the business, it said.
Barratt Developments Plc (BDEV) and Taylor Wimpey Plc advanced more than 2.5 percent after the London Stock Exchange Group Plc said the U.K. house builders will be added to the FTSE 100 Index. The changes are effective on Dec. 22.
Energy and commodity producers were the biggest drags on the Stoxx 600 after a two-day gain. Premier Oil Plc slid 2.3 percent and Seadrill Ltd. dropped 2.4 percent. Rio Tinto Group lost 2.2 percent and Anglo American Plc fell 2.6 percent.
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