Major stock indices in Europe show a positive trend

European stocks resumed their rally against the backdrop of better than forecasted corporate earnings reports. Support for indices also had an appreciation of the mining and energy sectors in response to the increase in oil prices and a number of precious metals.

Gradually, the focus shifts to ECB's meeting, which will be held tomorrow. It is expected that the base rate will remain at the zero level, and the amount of monthly asset purchases - at the level of 80 billion euros. Most economists also expect that the Central Bank will extend the QE which should be completed in March 2017, but this decision is unlikely to be taken before December. Meanwhile, ECB President Draghi may announce changes in the structure of the program, aimed at preventing possible shortages of acquired assets.

Certain influence on the dynamics of trade had inflation data in Britain. The ONS reported that the annual consumer price inflation rose in September to 1.0 percent from 0.6 percent in August, reaching the highest level since November 2014 and showing the biggest monthly gain since June 2014. It was expected that inflation will rise to 0.9 percent, ueled by nearly 20 percent drop in the pound.

Nevertheless, official statistics are waiting for clear signs of the impact from the weakened currency. Much of the growth of inflation in September was associated with the highest monthly rise in prices for clothing, as well as the increased cost of fuel. The data also showed that over the past three months (till September) prices rose by 0.7 per cent. The calculation of basic consumer price inflation - which excludes prices for energy, food, alcohol and tobacco - rose in September to 1.5 percent from 1.3 percent, which was also slightly above economists' expectations of 1.4 percent. Producer prices increased by 1.2 percent, recording the biggest growth in the past three years.

The composite index of the largest comapnies in the regio Stoxx Europe 600 rose by 1.2 percent. Shares of mining companies led the growth among the 19 industry groups, aided by a general weakening of the US currency. Now the US dollar index, showing the relationship of the US dollar against a basket of six major currencies, was trading lower by 0.2 percent.

Capitalization of Remy Cointreau rose 2.9 percent after the company said that the rate of increase in sales exceeded the estimates of experts.

Bellway shares increased by 1.2 percent amid reports that the amount of annual profits exceeded forecasts. In addition, the company announced a dividend increase.

Shares of Ryanair Holdings rose 2.7 percent, leveling before falling 3.2 per cent. While the airline worsened the forecast of net profit for the fiscal year 2016-2017 due to Brexit, analysts say that the current effect is reflected in the share price, which is still 12 per cent below the day of the referendum.

Quotes of Burberry Group Plc fell 7.4 percent, as wholesale revenues in the first half of the year fell more than expected.

Continental AG fell 3.3 percent after the company worsened its annual forecast profitability.

Danone SA rose 0.3 percent, as the company slightly lowered the growth forecast for annual revenue, but improved assessment of the growth of profitability on the operating profit.

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