• Draghi boosts stocks • VW scandal part deux • Marks and Spencer shares higher after results • US stock to open higher before Fed speakers • Tesla shares bounce on vehicle deliveries • Groupon shares plummet on earnings miss Having gained three days from three this week, European shares broke to a fresh two and-a-half month high on Wednesday. The Euro Stoxx 50 traded as high as 3,472 Wednesday morning, its highest since August 19. Markets have been enthused by another big hint of further monetary stimulus from ECB president Mario Draghi while at the same time seeing better than expected service sector and manufacturing data this week. At a European cultural event in Frankfurt, Mr Draghi reiterated that the level of monetary accommodation will be reviewed in December while emphasising that the governing council is willing and able to use all instruments at its disposal. Gains were a little more tempered in Germany’s benchmarked DAX index thanks to a 10% decline in Volkswagen shares. The carmaker has announced some irregularities in CO2 emissions and fuel consumption claims in its petrol engines. Not only is the size of legal penalties likely to be higher after this latest revelation but the associated rise in driver mistrust of VW could really bite into sales. UK stocks rose to a four-day high on Wednesday driven by well-received results from Marks and spencer and a strong day for the basic resources sector. The FTSE 100 reached 6,446, its highest since Thursday last week. The index continues to trade sideways between 6,300 and 6,500. Marks and Spencer was a top riser on the UK benchmark after sales declined less than expected in the first half of the year. M&S shares broke to a two-month high after investors reacted positively to the retailer’s refusal to discount its clothing lines which prompted a drop in revenues but a rise in profits. Still, top and bottom line earnings are still well down on the same period last year. The website fault last week that allowed M&S customers to see each other’s details was a worrying sign that the retailer is still struggling to get the basics right. US stocks look set for a higher on open on Wednesday with the Nasdaq set to benefit from better vehicle sales at Tesla ahead of speeches from Federal Reserve officials including Chair Janet Yellen. Tesla shares bounced from near two month lows after CEO Elon Musk reiterated 50k+ vehicle deliveries this year on the back of sales of its new SUV ‘Model X’. Having delivered 33,157 cars in the first three quarters, Tesla will need to deliver 16,843 cars this quarter, well up from the 11,580 in Q3. That’s a big ask and could create some fireworks if Tesla fails to deliver. Groupon shares could open as much as 25% lower after the deals-site missed sales estimates and issued weak guidance for the fourth quarter. USA pre-opening levels S&P 500: 3 points higher at 2,112 Dow Jones: 32 points higher at 17,950 Nasdaq 100: 10 points higher at 4,729 CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.