European stocks advance with ECB in focus

FXStreet (Córdoba) - European stocks advanced for a third day in a row Tuesday ahead of the European Central Bank monetary policy decision.

The Stoxx Europe 600 rose 0.22% to 343.60 in early trade. As for country-specific indexes the UK FTSE gained 0.23%. The Germany’s DAX 30 climbed 0.73% and the France’s CAC 40 advanced 0.25%. Spain’s Ibex 35 was up 0.24% while Italy’s FTSE MIB rose 0.36%.

Thursday’s ECB meeting remains on focus, as expectations of further easing measures to underpin growth and fight deflation, have been growing since Draghi’s speech in Jackson Hole.

There is no first-tier data scheduled for today, with Eurozone producer price index and US ISM manufacturing PMI and a gauge of economic optimism on tap.

In the FX market, the dollar trades higher across the board, with the USD/JPY soaring to the 104.85 zone and the GBP/USD falling to a 6-day low of 1.6553. The EUR/USD has been more resilient, trading nearly flat on the day after hitting a marginal new 1-year low of 1.3114.

As for commodities, gold fell 0.72% to $1,278 an ounce while crude oil dropped 0.34% to $95.63 a barrel.