Global stocks get a lift from growth hopes

Germany’s DAX index was down 0.1 percent, underperforming a 1 percent rise of the FTSEurofirst 300.

USA stock futures point to a flat open after modest gains overnight on the back of a rally in tech and energy shares.

Traders also noted supportive comments from the European Central Bank (ECB) after its president, Mario Draghi, said in an interview over the weekend that it was ready to do what it takes to keep its medium-term inflation target on course.

“Given the turnaround in the ECB’s view on deposit rate cuts, we expect a 10 basis point cut together with a strong signal that further deposit cuts are on the table”, analysts at Denmark’s Danske Bank reportedly said.

Major banks say the resulting surge against the euro EUR= and a handful of other currencies has drawn many investors back into last year’s big consensus trade of a push by the dollar towards parity with the euro.

During his speech in Frankfurt, the central banker said that the monetary policy package will be examined in December and that the ECB is willing to act to maintain monetary policy accommodation.

“The market got a bit caught offside…It seemed to be of the opinion that it was a done deal but clearly there are factors that still need to come into play”, Credit Agricole strategist Orlando Green said. European purchasing manager indices were mixed compared to expectations but all pointed to growth.

While data showed USA manufacturing activity slowed in October for a fourth month to a 2-1/2-year low, a rise in new orders offered hope.

“A lot of the (growth) concerns that in the summer have been pushed to one side…” The CSI 300 index .CSI300 of largest listed companies in Shanghai and Shenzhen closed 1.6 percent lower and the Shanghai Composite index .SSEC lost 1.7 percent. On Friday, United Kingdom industrial production is expected to decelerate in September to 1.3% y/y following 1.9% in August.

Bond yields rose on the prospect of higher US interest rates, after the Federal Reserve left the door open last week to a first increase since 2006 in December.

The dollar was down 0.1 percent against a basket of its peers.

Consumer prices in the 19-country euro zone slipped by 0.1 percent in September, far from the bank’s aim of just below 2 percent, prompting calls for the ECB to expand or extend its 60 billion euros ($66 billion) a month of asset purchases. According to data published on Sunday, French vehicle registrations rose 1% in October, with Renault recovering a few lost ground, while rival PSA Peugeot Citroen saw a fall.

Turkish stocks .XU100, which make up less than 5 percent of MSCI’s emerging market index, rose more than 5 percent after AK’s election win.