Europe close: Stocks moved in tight ranges after Draghi's comments

European equity markets on Wednesday, as comments from European Central Bank president Mario Draghi were offset by some mixed data and by decline in German stocks.

The benchmark Stoxx Europe 600 index closed up 0.50%, while France’s CAC 40 gained 0.25% and Germany's Dax fell 0.97%.

As of 1636 GMT, the euro was down 0.89% against the dollar and fell 0.62% and 0.53% against the pound and the yen respectively, while Brent crude tumbled 3.79% to $48.70

Draghi hints at more stimulus

Draghi said at a forum on banking supervision that the central bank remains ready to act to maintain support for the Eurozone.

“Mario Draghi has done little to dispel expectations of an expansion to ECB QE at its December meeting, with the president once more giving a heads up that the current policy will be reviewed in little over a month,” said IG’s market analyst Joshua Mahony.

In company news, Volkswagen fell 2.37% after the beleaguered German car maker admitted the diesel emissions scandal also included petrol engines.

Barry Callebaut slumped 10.2% after the maker of bulk chocolate cut its mid-term volume growth forecast and highlighted the difficult cocoa market this year.

Mixed Eurozone data

On the economic data front, the final reading of Markit’s purchasing managers’ index rose from September’s four-month low of 53.7 to 54.1 last month, slightly below the 54.2 flash estimate released last week.

The reading means the index has now remained above the neutral 50.0 mark since August 2013, as business optimism in the 19-country block remained largely positive.

Meanwhile, the Eurozone composite PMI rose from 53.6 in September to 53.9 in October, slightly below the 54.0 flash estimate, while figures from Eurostat showed Eurozone producer prices fell at the fastest pace since the turn of the year in September.

The producer price index for the domestic market dropped 3.1% year-on-year following a 2.6% decline in the previous month and compared with the 3.3% drop analysts had expected.

“October’s rise in the Eurozone composite PMI suggested that the region’s recovery maintained its pace at the start of fourth quarter,” said Jack Allen, European economist at Capital Economics.

“But current rates of growth are too slow to put upward pressure on inflation.”

Across the Atlantic, private consultancy ADP said employers added 182,000 jobs in October compared with a downwardly revised 190,000 reading in the previous month and with analysts’ expectations for a 180,000 reading.

Elsewhere, the Institute for Supply Management's non-manufacturing index climbed to 59.1 last month from 56.9 and compared with analysts’ expectations for a 56.5 reading.

Meanwhile, the US monthly trade deficit narrowed sharply to $40.8bn in September, down from the revised estimate of $48.0bn in August and compared with analysts’ forecast of $41bn.