Global stocks down ahead of US data, Fed speeches

LONDON — European stock markets brushed aside earlier weakness in Asia to post solid gains Monday with traders increasingly confident that the European Central Bank will bolster its stimulus program later this week.

KEEPING SCORE: In Europe, Germany's DAX was up 1 percent at 11,402 while the CAC-40 in France rose 0.7 percent to 4,962. The FTSE 100 index of leading British shares was 0.2 percent higher at 6,387. Wall Street was poised for a solid open, with both Dow futures and the broader S&P 500 futures pointing to a 0.2 percent advance at the bell.

ECB IN FOCUS: On Thursday, the ECB is widely expected to give the eurozone economy a further dose of stimulus as it tries to shore up the economic recovery and get inflation back towards its target of just under 2 percent on an annual basis. Measures anticipated include extending the current 1.1 trillion-euro ($1.2 trillion) stimulus program and increasing the amount banks have to pay to keep money at the European Central Bank.

ANALYST TAKE: "Although not all members of the Governing Council are convinced of the need for additional action, they appear to be in the minority," said Thomas Kobel, economist at SEB.

FED CONTRAST: While the ECB is expected to enact further stimulus, the U.S. Federal Reserve appears to be getting ready to lift its main interest rate in December amid strong jobs creation in the U.S. economy. That would be its first hike by the Fed since June, 2006. A raft of U.S. economic figures this week, culminating with Friday's nonfarm payrolls report for November, could well cement market expectations for a hike.

CURRENCY IMPACT: The expected divergence in the monetary policies of the two central banks has weighed on the euro but bolstered the dollar. On Monday, the euro was down 0.1 percent at $1.0582.

ASIA'S DAY: Seoul's Kospi fell 1.8 percent to 1,991.97 after South Korea's industrial production in October dropped unexpectedly from the previous month, led by weakness in chemicals, auto production and construction. Tokyo's Nikkei 225 retreated 0.7 percent to 19,747.47. The Shanghai Composite Index advanced 0.3 percent to 3,445.40, recovering a portion of Friday's 5.5 percent plunge. Sydney's S&P/ASX 200 lost 0.7 percent to 5,166.50 and Hong Kong's Hang Seng shed 0.3 percent to 21,996.42.

ENERGY: Benchmark U.S. crude rose 41 cents to $42.12 per barrel in electronic trading on the New York Mercantile Exchange, while Brent crude, which is used to price international oils, was up 46 cents at $45.32 per barrel in London.

CURRENCIES: The dollar gained to 122.93 yen from Friday's 122.76. The euro edged down to $1.0586 from $1.0593.