Europe open: Stocks nudge higher ahead of ECB; Zodiac Aerospace rockets

European stocks nudged higher in early trade as investors looked to the latest rate announcement from the European Central Bank.

At 0845 GMT, the benchmark Stoxx Europe 600 index and Germany’s DAX were up 0.1%, while France’s CAC 40 was 0.2% firmer.

Meanwhile, oil prices advanced, with West Texas Intermediate up 1% to $51.59 a barrel and Brent crude 1.2% higher at $54.60.

The ECB rate announcement is at 1245 GMT, with no change expected to headline rates or the bond-buying programme.

Ipek Ozkardeskaya, senior market analyst at London Capital Group, said: “The European Central Bank meets today and is expected to maintain the status quo, after having twisted its monthly purchases program at December’s meeting. Last month, the ECB had announced to reduce its monthly purchases from €80bn to €60bn coupled with nine months' extension in the quantitative easing programme to the end of 2017.

“President Mario Draghi had carefully stressed that this was not a tapering. The ECB’s monetary policy remains accommodative, especially as the European Union steps into a challenging year.”

On the corporate front, Zodiac Aerospace shares rocketed after Safran agreed to buy the company for €8.5bn in a deal that will create the world’s third largest aerospace supplier.

Italy’s UBI Banca was a high riser after signing a deal to buy three smaller Italian banks, while Remy Cointreau rallied as its third-quarter revenue surpassed analysts’ expectations thanks to strong demand in the US.

Anglo-Australian miner BHP Billiton ticked higher after saying it and its Brazilian iron-ore joint venture with Vale SA, Samarco Mineracao, have set a 30 June deadline with federal prosecutors in Brazil to settle a $47.5bn claim related a dam failure in November 2015 which killed 19 people.

Moneysupermarket.com surged after saying it expects to deliver strong full-year results, with revenue ahead by around 12% on the year.

On the downside, Gazprom was in the red after saying it swung to a net profit in the third-quarter even as revenue fell.

French retailer Carrefour lost ground despite reporting better-than-expected fourth-quarter sales.

In London, Royal Mail slumped as the dwindling volume of letters to Father Christmas and other festive missives continued to hold back its sales, with revenues remaining flat in the nine months to 25 December.