Europe close: Stocks edge higher on ECB easing

European stocks edged higher in quiet trade on Friday as investors mulled over the European Central Bank’s decision to extend its quantitative easing programme and as the focus shifted to next week's Federal Reserve meeting.

The benchmark Stoxx Europe 600 rose 1.02%, France’s CAC 40 was 0.6% higher and Germany’s DAX was up 0.22%.

Oanda analyst Craig Erlam said: “Mario Draghi and his colleagues have already given us a festive surprise, delivering a lump of coal wrapped in tinsel.

“While a reduction in asset purchases had been touted, I don’t think markets were expecting it at a time when inflation is still so far below target and the economic outlook only marginally improved.”

Meanwhile, oil prices were in the black ahead of a meeting of OPEC and non-OPEC members on Saturday to discuss production.

West Texas Intermediate rose 1.07% to $51.39 per barrel and Brent crude was up 0.37% at $54.09.

Stocks rallied on Thursday after ECB chief Mario Draghi said the central bank would keep buying government bonds through next year, albeit at lower amounts each month from April.

The ECB said it will buy €60bn a month in government bonds from April 2017 until December 2017, compared to €80bn currently.

On the economic front, figures from Destatis showed Germany’s trade surplus was a little smaller than expected in October, with exports up 0.5% from the previous month and imports 1.3% higher.

Analysts had been expecting exports to rise 1% and imports 0.9%.

The seasonally-adjusted trade surplus narrowed to €20.5bn from €21.1bn in September, versus expectations of €21.5bn.

In corporate news, Electrolux shares rose 3.79% after the Swedish home appliance maker said it expects demand for its products to slow next year.

Digital security group Gemalto finished off a choppy day with a 6.25% gain, after announcing an agreement to buy 3M’s identity management business for $850m.