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European indices rebound from yesterday's drop tracking gains in commodities with mining and energy stocks adding the most as copper rose from 5-year lows and oil recovered. Yesterday commodities fell as the World Bank cut its forecast for 2015 despite continuously falling oil prices. The bank cited disappointing growth prospects in the Eurozone and Japan as main reasons. Strong company quarterly results further lend support.
Markets were also driven by expectations that the ECB will implement quantitative easing at its policy meeting on January 22nd after the interim ruling by the European Court of Justice. Yesterday Advocate General Pedro Cruz Villalon of the EU Court of justice in Luxembourg said the ECB's Outright Monetary Transactions program is "in principle" in line with European law and advised the judges to approve the measures.
The FTSE 100 index, the most commodity-and energy heavy index out of the three, is currently trading +1.14% quoted at 6,461.19 points, Germany's DAX 30 added +1.24% trading at 9,938.53. France's CAC 40 rose +1.31%, currently trading at 4,278.64 points.
Market participants are looking forward to the publication of the Eurozone's Trade Balance and later in the day the NY Fed Empire State manufacturing index, Initial Jobless claims and the Producer Price Index as well as the Philadelphia Fed Manufacturing Survey in the U.S.
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