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London - European stocks were little changed, poised for their highest level since January, as investors awaited this week’s European Central Bank meeting.
Gains in miners and energy producers offset a decline in technology shares. Anglo American and Fresnillo rose at least 1.7%, while Eni and Tullow Oil followed crude prices higher. Ingenico slumped 14% after the electronic payments processor lowered its annual profit margin and revenue growth forecasts.
The Stoxx Europe 600 Index added less than 0.1% at 09:56, paring a rise of as much as 0.3%. Europe’s benchmark moved higher for the past three days, surging on Friday after US data signaled the labor market is holding steady without strengthening the case for an imminent rate increase. Traders are pricing in less than even odds of a Federal Reserve hike until December.
Investors are speculating that global central banks will keep monetary policies supportive of risk assets, ahead of Thursday’s ECB rate decision. Most economists predict President Mario Draghi will lengthen quantitative easing for a second time, with eurozone inflation stuck near zero for almost two years and Brexit threatening to undercut the region’s recovery.
A report today showed German factory orders increased less than forecast in July.
Still, the benchmark DAX Index posted one of the best performances among western-European markets. It’s up 0.3%, inching closer to erasing its annual decline, helped by a 4% gain in Fresenius SE. The healthcare provider said it will pay $6.42bn for Spain’s largest private hospital company, IDC Salud.
OCI slid 6% after the fertilizer producer reported a decline in first-half revenue.
