LCG London Cap

Global stocks mostly steadied on Thursday ahead of a European Central Bank meeting in Malta that investors are watching for clues of further monetary stimulus.

While most economists expect no immediate change in ECB policy, many predict an expansion of the bank's bond-purchasing program before the end of the year to combat sagging inflation.

The Stoxx Europe 600 rose 0.1% in early trade, led by a 0.2% rise in Germany's DAX index.

Asian markets were mixed. Chinese stocks rebounded from a sharp fall late Wednesday, while bourses in Japan and Hong Kong edged lower.

"Today's ECB meeting and next week's [Federal Reserve and Bank of Japan] announcements will probably hold the key to the next leg of the markets," said Jonathan Sudaria, night dealer at London Capital Group.

Thursday's moves followed a volatile session in the U.S. where a report about Canadian drug maker Valeant Pharmaceuticals International sent health-care shares lower across the board. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite all ended with losses.

Chinese stocks steadied after the People's Bank of China said, after the market closed Wednesday, it had pumped liquidity into the market. The Shanghai Composite Index rose 1.5% Thursday after losing 3.1% in the previous session.

Japan's Nikkei Stock Average was down 0.6%, having risen 1.9% Wednesday on expectations of further central bank stimulus. Shares in Hong Kong's Hang Seng index were down 0.7% after reopening, following a holiday on Wednesday.

In currencies, the euro fell 0.2% against the dollar to $1.1315 as investors awaited the outcome of the ECB meeting and any hints from ECB President Mario Draghi about additional easing.

"Draghi is likely to reiterate concerns about the inflation outlook and risks from emerging markets and to make strong hints that the Bank may loosen policy further soon," Jennifer McKeown at Capital Economics wrote in a report. "Anything less would be a disappointment and could see the euro rise further against the dollar," Ms. McKeown said.

Ahead Thursday, the third-quarter earnings season continues with an update from equipment-maker Caterpillar Inc., closely watched as a gauge of global manufacturing. Reports are also due from McDonald's Corp., Southwest Airlines Co. and Under Armour Inc. as well as tech giants Alphabet Inc., Amazon.com Inc. and Microsoft Corp. after markets close.

In commodities, Brent crude was up 0.5% at $48.07 a barrel. Oil prices gained in Asian trade after falling on a surge in U.S. stockpiles.

Gold was up 0.2% at $1168.60 a troy ounce.

Write to Riva Gold at riva.gold@wsj.com

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(END) Dow Jones Newswires

October 22, 2015 04:55 ET (08:55 GMT)

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