Europe midday: Equities advance as investors await Draghi's speech

European stocks rose on Wednesday as investors looked to a speech by European Central Bank chief Mario Draghi.

At midday, the benchmark Stoxx Europe 600 index was up 0.7%, Germany’s DAX was 1.1% higher and France’s CAC 40 was up 0.7%.

In currency markets, the euro was recovering after sliding to its lowest level against the greenback since April ahead of a speech by Draghi at a Bank of England event in London, during which he may allude to further easing.

“Despite the euro being pushed lower by last week’s bumper US payrolls report there had been speculation that a potential US rate rise next month might be enough to stop the ECB taking extra easing measures in December,” said Michael Hewson, chief market analyst at CMC Markets.

“That doesn’t appear to be the case if the mood music coming out of Europe has been any guide this week, with speculation about an extension to the expiry of QE, an increase in the monthly amount, as well as further reductions in the deposit rate below -0.2%. Markets will be hoping for any additional insight the ECB President might feel compelled to impart.”

On the corporate front, Anheuser Busch-InBev confirmed it has made a formal offer to buy London-listed rival SABMiller for £44 a share in cash, lifting the stock in both companies.

Danish brewer Carlsberg rallied as investors welcomed its decision to cut staff by 15% as it looks to return to growth. The company also said it would book $1.4bn in impairment and restructuring costs.

E.ON shares gained ground despite the company posting a wider-than-expected loss for the third quarter, while Henkel surged as it lifted its earnings per share forecast and reported a rise in quarterly profit.

On the downside, media group Vivendi tumbled after its results for the first nine months of the year fell short of analysts’ expectations.

Shares in supermarket retailer Sainsbury reversed early gains to trade lower after it posted an 18% drop in first half pre-tax profit.

In addition, investors digested data releases from China.

Industrial production there slowed to 5.6% year-on-year in October from 5.7% in September a touch weaker than expected.

Retail sales, meanwhile, were up 11% on the year in October compared with a 10.9% increase in September. The data was just a little better than forecast.