Dovish Draghi Remarks Fail To Inspire European Markets

(RTTNews) - European stocks nudged slightly higher Thursday, but finished well off their best levels of the session despite some relatively dovish remarks from European Central Bank President Mario Draghi.

The ECB as expected, left interest rates unchanged this morning, keeping the main lending rate near zero.

More importantly, ECB chief Draghi said policy makers stand ready to take additional stimulus measures if needed.

"Should it become necessary to further address risks of too prolonged a period of low inflation, the Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate," Draghi said in its introductory statement to the customary post-decision press conference in Frankfurt.

The ECB has been viewed as overly reluctant to embark on full-scale quantitative easing, even as drastic measures have been adopted in the U.S. and Japan.

Today's downbeat economic news from Germany raises the likelihood that the ECB will be compelled to act before year's end.

Industrial data for Germany in September showed that new orders rose by only 0.8 percent, well short of economists' estimates.

Meanwhile, the Bank of England once again kept its record low interest rate unchanged as below target inflation gave policymakers time to delay a rate hike.

The Euro Stoxx 50 index of eurozone bluechip stocks added 0.50 percent, but remains slightly lower for the year-to-date.

The German DAX rose 0.66 percent, the French CAC 40 added 0.46 percent and the FTSE 100 index of the U.K. nudged up 0.18 percent.

In Frankfurt, Lanxess plunged 7 percent after reporting disappointing third-quarter results.

Reinsurer MunichRe reported a 17 percent rise in third-quarter net profit because of low disaster losses. Still, shares eased 0.8 percent.

Meanwhile, HeidelbergCement jumped 5.3 percent, after reporting increased revenues for the third quarter.

Nivea maker Beiersdorf, which confirmed annual outlook, surged up 6.6 percent.

Adidas gained 3.8 percent. The sports goods giant reported better-than-expected results.

In Paris, Credit Agricole and Societe Generale both reported third-quarter profits that exceeded market estimates. Still, shares of both banks were sharply lower on the day.

Legrand, which reported 9-month results, fell 2.8 percent. The company warned about a challenging business environment.

AstraZeneca eased 0.6 percent. The UK-based drug maker said third-quarter profit declined from the prior year, amid hefty charges. Revenue improved year over year, reflecting the continuing strength of acid-reflux pill Nexium.

Wm. Morrison Supermarkets led grocery chains higher with a 6.2 percent advance. The company said it is looking forward to the key Christmas period, and that it remains confident in fiscal 2015 profit outlook.

Swisscom fell 1.9 percent in Zurich. The company said profit increased for the nine-month period, amid a modest rise in revenues.

Zurich Insurance posted a 16 percent decline in third-quarter profits amid higher than expected tax charges. Shares slipped 2.1 percent.

The company also warned that the economic environment was getting tougher for insurers.