European stocks rallied on Wednesday on news that the European Central Bank is willing to provide further stimulus to the economy. Mario Draghi, president of the ECB, said that the bank is ready to intervene in December if inflation needs to be boosted.
The Stoxx Europe 600 index is up 0.92% on the day, which would mark an 11-week high if it remains above 0.9%.
Following the closing bell on Tuesday, Draghi stated that the stimulus plan will need to be reevaluated during the December meeting. Every evaluation indicates that the ECB may be looking into further rate cuts and easing to help the struggling economy.
A 10 basis point cut is expected, with deposit cuts also being discussed.
The German DAX 30 index underperformed on Wednesday, down 0.45% on the day. Much of the loss is due to Volkswagen AG (VOW3) losing 4.35% on the day. The company scandal has been reignited and now includes gas fueled vehicles, causing a major concern that the company misled regulators in terms of the reach of the emission scandal.
The FTSE 100 index in the UK is up 0.79% Wednesday, with Glencore (GLEN) rallying 7.28% on the day after announcing a significant reduction in company debt. France’s CAC 40 is up 0.71% on the day.