Europe close: Shares slip on lack of ECB action

European stocks wavered and then fell back as the European Central Bank held off from announcing any further stimulus at its policy meeting, as some observers - but not all - had anticipated.

The benchmark Stoxx Europe 600 index ended lower by 0.33% to 349.32, Germany’s DAX ended down 0.72% and France’s CAC 40 was 0.34% lower.

Nonetheless, by the close of play all the main equity benchmarks had come off their intra-day lows, with the Stoxx 600 gauge of bank stocks gaining 1.17%.

Oil&Gas shares on the other hand were hardly benefited from a jump higher in oil futures, with the Stoxx 600 sector gauge edging higher by just 0.21%.

West Texas Intermediate crude oil futures advanced 3.98% to $47.38 a barrel and Brent crude was 3.69% firmer at $49.82.

The tone was underpinned by better-than-expected Chinese trade data, which showed imports rose 1.5% in August compared to a year ago - their first increase since late-2014 - versus forecasts of a 4.9% decline. This was also a big improvement on the 12.5% fall seen in July. Meanwhile, exports dropped 2.8% (consensus: -4.0%) following a 4.4% slide the month before.

Contrary to some forecasts, although the likes of Barclays or Morgan Stanley called it right, the ECB opted to stay put both on rates and as regards the possible extension of its asset purchases beyond 2017.

"While the ECB remained very much in “wait and see” mode at its September meeting, we believe further action is more likely than not," Dr. Howard Archer, chief European+UK economist at IHS Global Insight said in a research report sent to clients.

"There were several indications in both the statement and in Mr. Draghi’s comments that the ECB is fully prepared to take further stimulative action to ensure that inflation returns to its targeted level of “below, but close to, 2%” over the medium term," Dr. Archer said.

ECB boss Mario Draghi did call for those countries with space to use fiscal stimulus (public sector spending, that is) to do so.

In corporate news, electronics retailer Dixons Carphone rose after it said group revenue was up 9% year-on-year in the first quarter and like-for-like revenue improved 4% in the 13 weeks to 30 July.

Micro Focus International surged after agreeing an $8.8bn deal to merge with Hewlett Packard's software business, which includes a $400m return of value to the FTSE 100 company's' shareholders.

Dutch semiconductor equipment maker ASML was on the back foot as Samsung Electronics said it was selling shares in the company.