Europe open: Stocks edge higher as investors look to Draghi

European stocks edged higher in early trade, recovering from heavy losses in the previous session as investors looked ahead to comments from European Central Bank chief Mario Draghi.

At 0905 GMT, the benchmark Stoxx Europe 600 index was up 0.5%, Germany’s DAX was 0.1% firmer and France’s CAC 40 was up 0.3%.

“European markets are tracking higher in early trading following the late rally off lows on Wall St although some way off recouping yesterday's losses following the global rout,” said Andy McLevey, head of dealing at Interactive Investor.

“The volatility of late is set to continue as nervous investors tread with caution ahead of the ECB meeting while global markets remain under pressure amid continued global economic growth concerns and continued weakness in the price of oil.”

Investors will be looking ahead to the European Central Bank’s rate announcement at 1245 GMT and the ensuing press conference at 1330 GMT.

No major policy changes are expected, so the main focus will be on what ECB chief Draghi has to say.

Societe Generale strategist Kit Juckes said: “Mario Draghi will have his work cut out if his aim at the press conference after the ECB meeting is to sound dovish enough to anchor the euro.”

“A lack of inflation and the prospect of more downward pressure on prices as a result of the latest fall in oil prices, will give him ammunition to be ‘dovish’ and does give the ECB leeway to ease further in due course, but the euro area economic data so far in 2016 have been an oasis of calm amid the mayhem elsewhere.”

In corporate news, education publisher Pearson surged to the top of the FTSE 100 despite warning over profits, as investors welcomed the company’s new restructuring programme.

Elsewhere, Deutsche Bank was under pressure after saying it expects to post a 2015 net loss of around €6.7bn on the back of writedowns and litigation charges.

Oil prices were in the red but off lows, with West Texas Intermediate down 0.5% at $28.21 a barrel and Brent crude 0.7% weaker at $27.70.

Still to come, US initial jobless claims and the Philadelphia Fed survey are at 1330 GMT while consumer confidence is due at 1500 GMT.