US. stocks edged higher Wednesday, rising 0.3%, as energy stocks climbed with crude oil and shares of financial companies reversed some of Tuesday’s losses.
Oil and Gas Sector stocks rose 5.9% yesterday following the 1.5% rise in the oil price.
In economic news, President Trump agreed on a three-month debt-limit extension in the US ensuring funding for the Government to the end of the year.
European stocks also advanced, gaining 0.4%, as carmakers jumped to a seven-week high, offsetting a decline in travel and leisure companies.
Market attention will be focused on the ECB meeting today. Draghi has held off announcing plans surrounding QE tapering since first alluding to it at the Sintra conference in June.
The currency has gained strongly against the dollar since June which poses a headwind to inflation forecasts. A steady return to 2% inflation supports the argument for QE tapering. Despite the improving growth outlook within the Eurozone the challenge for the central bank will be to begin dialling down quantitative easing while providing assurance that any moves will be gradual.
Asian stocks were mixed, giving up some early gains, as investors weighed a U.S. deal that ensures the funding of its government through mid-December against persistent geopolitical tensions. Japanese stocks gained 0.2% while Chinese equities lost 0.4%.