Europe open: Stocks nudge up as investors eye ECB announcement

European stocks nudged a touch higher in early trade as investors looked to the European Central Bank’s rate announcement, amid expectations monetary policy will be held steady.

At 0840 BST, the benchmark Stoxx Europe 600 index was up 0.2%, while Germany’s DAX and France’s CAC 40 were up 0.1%.

At the same time, oil prices advanced. West Texas Intermediate was up 1.8% to $46.30 a barrel and Brent crude was 1.4% higher at $48.66.

Better-than-expected Chinese trade data helped to underpin the mood somewhat. Imports rose 1.5% in August compared to a year ago, versus forecasts of a 4.9% decline. This was also a big improvement on the 12.5% fall seen in July. Meanwhile, exports dropped 2.8% following a 4.4% drop the month before.

Markus Huber, a trader at City of London Markets, said: “European shares are trading little changed to moderately higher this morning with traders awaiting today's ECB meeting. Overnight Chinese trade figures appear to be slightly supportive as imports surprisingly are showing growth which might indicate that the Chinese economy is finally improving. Still one month doesn't necessarily make a new trend therefore next month's figures will certainly be of heightened interest.

“Concerning today's ECB's meeting general expectations about new or increased additional special measures to boost growth and to fight disinflation are low and it could very well turn out to be a non-event. On the other hand, however, with Draghi nowhere near to achieving his goals he might very well continue to assure the market that there might be more to come and that he still has tools available to boost growth.”

The ECB rate announcement is at 1245 BST, with the press conference at 1330 BST.

In corporate news, electronics retailer Dixons Carphone rose after it said group revenue was up 9% year-on-year in the first quarter and like-for-like revenue improved 4% in the 13 weeks to 30 July.

Micro Focus International surged after agreeing an $8.8bn deal to merge with Hewlett Packard's software business, which includes a $400m return of value to the FTSE 100 company's' shareholders.

Dutch semiconductor equipment maker ASML was on the back foot as Samsung Electronics said it was selling shares in the company.