Major stock indices in Europe trading higher

European stocks rose moderately, returning to 11-month high, helped by banking sector shares rally as well as the increase in oil prices.

UniCredit, Italy's largest bank, presented a program aimed at increasing its balance sheet. Under this program, the bank intends to reduce staff by another 6.5 thousand man in the next 3 years. It is expected that this measure will help reduce the cost by 1.7 billion euros per year until 2019. Among the priorities of the bank - to get rid of bad loans. UniCredit plans to sell these assets in the amount of EUR 17.7 billion. UniCredit shares rose by 8.25 per cent,

Oil rose after IEA raised its forecast for oil demand in 2017 with 110,000 barrels a day to 1.3 million barrels per day. Meanwhile, demand for 2016 was increased by 120 thousand barrels a day to 1.4 million barrels a day. In addition, the IEA reported that in November the world's oil reserves have broken a record figure of 98.2 million barrels. OECD stocks in October fell by 75 million barrels after a noted record high of 3.102 billion barrels in July.

Investors are also preparing for the FOMC meeting. It is expected that the Fed will raise short-term interest rates. According to the futures market, the likelihood of tighter monetary is 93.2% against 94.9% the previous day. However, the more investors will be focused on Fed's forecasts about future levels of interest rates.

The composite index of the largest companies in the region Stoxx Europe 600 is trading with an increase of 0.8%..

Quotes of Monte dei Paschi di Siena rose 1.7 percent, as the source in the Ministry of Finance of Italy said that the country is ready, if necessary, to save the bank.

Shares of media companies rose approaching the highest level since late October. Mediaset SpA's capitalization increased by 21.4 per cent, recording the maximum increase in 20 years, after Vivendi SA acquired a 3 percent stake in the company and said it could buy about 20 percent.

At the moment:

FTSE 100 +34.21 6924.63 + 0.50%

DAX +94.30 11284.51 + 0.84%

CAC 40 +35.55 4796.32 + 0.75%