European stocks climbed to a fresh five-year high Wednesday, as investors continued to weigh up the chances of further easing measures from the European Central Bank to boost a sputtering recovery.
Markets were supported by robust corporate earnings, but economic indicators in the euro zone were mixed.
The Stoxx 600 index, which contains a wide variety of European stocks, was up 0.6% to hit 323.90, the highest since May 2008. Germany's DAX was up 0.4% France's CAC rose 0.8%, while London's FTSE 100 added 0.1%.
Futures contracts indicated likely gains of 0.5% for the S&P 500 and 0.4% for the Dow Jones Industrial Average at the open on Wall Street. Changes in futures don't always accurately predict early market moves after the opening bell.
Asian markets provided a mixed backdrop, with most major indexes little changed, but Tokyo's Nikkei getting a boost from a weaker yen. Shares in the euro zone had lost ground Tuesday after the European Commission lowered its growth outlook for the European Union's economy.
But expectations remained that the ECB may act to bolster the economy, possibly as soon as Thursday's policy decision.
"Investors will be watching the ECB announcement closely in light of last week's euro-zone inflation report, which was worryingly low. It's possible the ECB will decide to trim interest rates at the margin," said Stephen Macklow-Smith, a European equities portfolio manager at J.P. Morgan Asset Management, which oversees $1.5 trillion of assets.
Some patchy economic data had little overall impact on markets. Data firm Markit said Wednesday its composite purchasing managers index for the euro area, a monthly gauge of activity across manufacturing and services, edged down to 51.9 in October from 52.2 in September. Even so, that figure narrowly beat previous expectations. A reading above 50 indicates growth.
Elsewhere, figures showed retail sales in the euro zone fell in September.
The possibility of a rate cut has also weighed on the euro, although the single currency recovered some of its recent losses against the dollar. The pound extended gains against the dollar, rising above $1.61 for the first time in more than a week, after U.K. industrial-production figures for September came in stronger than expected.
Corporate news was largely positive. Shares in Dutch bank ING Groep ING -4.05% gained after it reported a rise in third-quarter underlying profit, while staffing company Adecco ADEN.VX +4.46% rose after posting better-than-expected third-quarter earnings, boosted by growth in the U.S. and a continued improvement in most of Europe.
Vestas Wind Systems VWS.KO +15.60% surged after it said its third-quarter net loss narrowed.
French engineering firm Alstom ALO.FR +5.06% rose after saying it plans to raise between €1 billion ($1.35 billion) and €2 billion from the sale of assets including a stake in the unit that makes the high-speed TGV trains.
