Major European stock indices trading in the green zone

European stock indices show an increase for the second time in three days on optimism that the policy of the world's central banks will continue to support growth.

At the end of the two-day meeting, the Bank of Japan left interest rates on deposits at the level of -0.1%. The Board also left unchanged the target volume of purchases of government bonds - at 80 trillion yen per year. However, the Central Bank unexpectedly introduced a target rate of return on 10-year government bonds at 0% within the framework of strengthening the fight against deflation. This measure was taken after the assessment of existing measures that do not yield results. The Bank of Japan first introduced the target level for the long-term rates, and it happened at a time when other central banks have difficulty in finding ways of accelerating inflation. "Investors reacted positively to the decision, considering that the Central Bank will make every effort to overcome deflation," - said Kengo Suzuki analyst at Mizuho Securities.

In the last session, European stocks fluctuated between gains and losses, in response to mixed economic data and fears that central banks may be less willing to strengthen measures to stimulate the economy.

To the growth also contributes the situation on the oil market. Quotes of oil rose by about 2 per cent due to a report from the American Petroleum Institute, which pointed to a significant reduction in US oil inventories. According to API, oil reserves in the previous week fell by 7.5 million barrels, while analysts had expected an increase. Later today iUS Department of Energy data will be published. It is estimated that crude oil inventories rose by 2.25 million barrels to 513.05 million barrels.

Also in focus were revised forecasts from the Organisation for Economic Cooperation and Development. The OECD lowered the forecast for world GDP in 2016 to 2.9%. In June, the OECD expected an increase of 3%. Global GDP in 2017 deteriorated to 3.2% from 3.3%. A slight decrease reflects the weakening of forecasts of major economies of the world, especially in Britain, in 2017, partially offset by the gradual improvement of the situation in the main emerging markets. Also, the OECD pointed out the very weak growth in trade. The rate of increase in world trade slowed down approximately double compared to pre-crisis levels.

The composite index of the largest companies in the regios Stoxx Europe 600 grew by 0.9 percent. Shares of banks and insurance companies show the most gains, which is associated with the decision of the Bank of Japan, and the expectation of the Fed's meeting today. It is unlikely that the Fed will raise rates in September, but investors will be closely watching the press conference and forecasts looking for indications that a decision may be taken in December.

Capitalization of Banco Santander SA rose 3.4 percent after reports that the lender has completed negotiations with the Royal Bank of Scotland, to buy Williams & Glyn.

Shares of Inditex SA rose 0.9 percent after the world's largest clothing retailer reported that earnings exceeded analysts' expectations.

The cost of Eurofins Scientific SE has increased by 3.9 percent, as the company raised its earnings forecast for the current year and said it remains on track to achieve its objectives for 2020.

At the moment:

FTSE 100 6854.75 +23.96 + 0.35%

DAX +113.99 10507.85 + 1.10%

CAC 40 +53.45 4442.05 + 1.22%