UKX FTSE 100 Index

By Emily Horton

Major European indexes were trading higher on Thursday -- following marginal U.S. gains -- but pressure is expected to mount ahead of the European Central Bank's first policy meeting of 2019.

What are markets doing?

The Stoxx Europe 600 gained 0.2% to 355.91, after remaining mostly unchanged on Wednesday.

Italy's FTSE MIB Italy index rose by 1% and Germany's DAX 30 gained 0.4% to 11,110.92. France's CAC 40 was up 0.5% at 4,865.23

But the U.K.'s FTSE 100 lost 0.1% to 6,839.57.

The euro fell to $1.1342 from $1.1381, while the British pound dropped to $1.3047 from $1.3068 late Wednesday in New York.

What's driving the market?

Wall Street finished on a positive note (http://www.marketwatch.com/story/futures-point-to-modest-stock-market-rebound-2019-01-23)on Wednesday, with slight gains from corporate heavyweights shrugging off lingering worries over global growth and U.S.-China trade tensions.

However, markets are awaiting Mario Draghi's media conference later today, with the ECB President expected to acknowledge growing risks to the eurozone's economic outlook (http://www.marketwatch.com/story/all-eyes-on-mario-draghi-as-investors-look-for-ecb-to-acknowledge-risks-to-eurozone-economy-2019-01-23).

Europe's economic slowdown is also on the minds of the world's business and political leaders in Davos, The Wall Street Journal reported (https://www.wsj.com/articles/europes-political-funk-sets-back-its-economy-11548270493). According to Spain's new Prime Minister Pedro Sánchez Europe, the continent's inability to recover from the shock of the financial crisis has left in its wake "polarization, reactionary populism and inequality".

Manufacturing and services data from two of Europe's biggest economies has added to the gloomy mood. France's services PMI fell sharply to 47.5 -- a five-year low. Meanwhile, Germany's numbers for manufacturing showed a slide into contraction of 49.9 -- the lowest since June 2013.

The European aerospace giant Airbus SE (AIR.FR), meanwhile, has s (http://www.marketwatch.com/story/brexit-brief-airbus-boss-slams-uk-over-disgraceful-lack-of-clarity-for-business-2019-01-24)lammed the U.K.'s handling of Brexit negotiations (http://www.marketwatch.com/story/brexit-brief-airbus-boss-slams-uk-over-disgraceful-lack-of-clarity-for-business-2019-01-24) and suggested it could move business and jobs out of the country if no withdrawal deal can be agreed with Brussels.

In the U.S., President Donald Trump has agreed to hold his State of Union address (http://www.marketwatch.com/story/trump-agrees-to-hold-state-of-the-union-address-after-shutdown-ends-2019-01-23) after the partial government shutdown has ended.

And the chairman of telecommunications giant Huawei Technologies Co. (002502.SZ) is pushing back against accusations from the U.S. government that his company conducts espionage for the Chinese government, arguing that Huawei is being unfairly targeted without any proof, the Journal also reported (https://www.wsj.com/articles/u-s-believes-it-doesnt-need-to-show-proof-huawei-is-a-spy-threat-11548288297).

What stock are active?

German-listed companies Delivery Hero AG (DHER.FF) and Adidas AG (ADS.XE) both lost 3% on Thursday.

Tod's S.p.A. (TOD.MI) dropped by more than 6%, a day after the company reported a decline in sales for last year (http://www.marketwatch.com/story/tods-shares-hit-by-drop-in-2018-revenue-2019-01-24).

Telecommunications company Vodafone Group PLC(VOD.LN) fell by 3%.

Air France lost almost 1%, after the airline signed a tentative deal with pilot's union (http://www.marketwatch.com/story/air-france-in-tentative-deal-with-pilots-union-2019-01-24) SNPL and SPAF.

Meanwhile, in financial stocks, Old Mutual Ltd. (OMU.LN) gained just over 3%.

(END) Dow Jones Newswires

January 24, 2019 05:29 ET (10:29 GMT)

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