European Markets Rise After Draghi Comments

(RTTNews) - The European markets are trading higher on Monday, after European Central Bank President Mario Draghi indicated last week in Wyoming that policymakers are prepared to roll out more monetary stimulus measures to counter deflationary risks and boost demand in the ailing euro zone economy. Meanwhile, the UK market is closed for the Summer Bank holiday.

The Central bankers meet in Wyoming late last week gave out mixed signals. While Federal Reserve Chair Janet Yellen's speech turned out to be a non-event that offered very little about the direction of monetary policy, Bank of Japan Governor Haruhiko Kuroda said Japan is committed to continuing the accommodative stance until the 2 percent inflation target is met and maintained in a sustainable manner.

Investors shrugged off data showing that German business sentiment weakened more than expected in August to 106.3. Economists had forecast the indicator to drop to 107 from July's initially estimated score of 108.

Across the Atlantic, Markit's composite PMI figures for August and new home sales data for July are slated for release later in the global day, which may influence sentiment.

The Euro Stoxx 50 index of eurozone bluechip stocks is adding 1.01 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is gaining 0.61 percent.

The German DAX is gaining 1.05 percent and the French CAC 40 is rising 1.01 percent. Switzerland's SMI is gaining 0.43 percent.

In Frankfurt, HeidelbergCement and Lanxess are rising 1.4 percent each.

BMW, Daimler and Volkswagen are rising between 1.3 percent and 1 percent.

Meanwhile, Lufthansa is losing 1.3 percent. The airline's management has called a decision by its labor union threatening a new round of strikes in a dispute over wages and early retirement benefits as "incomprehensible."

In Paris, Unibail Rodamco is gaining 1.9 percent. Societe Generale raised the real estate investment trust to "Buy" from "Hold."

Essilor International is gaining 1.8 percent and Airbus Group is adding 1.7 percent.

Saint-Gobain, Air Liquide, Safran and Danone are rising notably.

Roche is moderately higher in Zurich. The Swiss pharmaceutical giant has agreed to buy US biotech company InterMune Inc. (ITMN) for $8.3 billion in cash, thus expanding Roche's respiratory product portfolio.

The Asian stocks ended mixed, as investors digested speeches by Federal Reserve Chairwoman Janet Yellen and ECB President Mario Draghi at the Jackson Hole Symposium.

In the U.S., futures point to a cautious open on Wall Street. In the previous session, stocks ended narrowly mixed showing little change on Friday, as investors weighed remarks by central bankers at a high-profile gathering and remained wary of Ukraine tensions.

Crude for October delivery is gaining $0.17 to $93.81 per barrel, while gold is losing $2.1 to $1278.1 a troy ounce.