European shares close in green amid ECB stimulus speculations

European shares most European shares closed in green on Monday trading as downbeat euro area manufacturing data raised speculations the ECB will use QE measures to bolster recovery.

Today’s report showed that euro area PMI manufacturing dropped to 50.7 last month from 51.8 in July.

The main concentration will be on Thursday’s monetary decision by the ECB amid expectations of seeing new measures after the fall in inflation to its lowest level since October 2009.

However, the gains were limited due to the escalating tensions in Ukraine, which prompted the EU to give Russia a one week chance to change its course in Ukraine otherwise it will impose a new round of sanctions.  

The STOXX EUROPE 600 soared 0.25% to record 342.86 points. Health Care led the advance with a rise of 0.97%, followed by Energy which recorded 0.56% rise. 

The highest shares were for Dixons Carphone as it advanced 6.91% to 368.40 GBP, while the biggest drop was recorded by Iliads SA as its shares plummeted 8.82% to 152.45 EUR.

Looking at other the major European indices, the French CAC index edged down 0.03% to 4379.73 levels and Germany`s DAX index rose 0.09% to 9479.03 points. Britain`s FTSE 100 index recorded 0.08% advance to 6825.31 points.