European stocks were higher in morning trade Wednesday, shrugging off market jitters over central bank uncertainty and a renewed drop in oil prices. The pan-European STOXX 600 was up 0.31 percent. European bucked the negative trade trend seen in Asia and the U.S. on Tuesday, where uncertainty over central banks' next moves worried investors. The U.S. Federal Reserve meets next week on September 20 although the chances of a rate hike remain slim. Market expectations for a Fed rate hike next week were 15 percent Tuesday, according to the CME Group's FedWatch tool. Bayer-Monsanto deal expected In business news, chemicals and healthcare group Bayer is poised to announce the acquisition of U.S. seeds company Monsanto on Wednesday for more than $66 billion, clinching the biggest deal of the year, people familiar with the matter said, Reuters reported. Shares of Bayer were trading higher. Novo Nordisk was trading in positive territory after Exane BNP Paribas raised its outlook on the stock from "neutral" to "outperform". Banca Monte dei Paschi di Siena shares were sharply lower as the bank is expected to name Marco Morelli as the new chief executive on Wednesday. Morelli was in Frankfurt on Tuesday meeting the European Central Bank, according to Reuters. Luxury stocks lose shine A number of luxury stocks were lower after earnings. France's Hermes said it was going to scrap annual sales growth forecasts as of 2017 due to the uncertain trading environment, sending shares in the luxury goods maker sharply lower. Richemont said operating profit for the six months ending September 30 is expected to be around 45 percent lower than in the same period last year. LVMH, Burberry and a number of other luxury stocks fell sharply. U.S. stocks were also hit Tuesday by a decline in oil prices after the International Energy Agency (IEA) warned in its latest market update that it may take longer for oil markets to re-balance. On Wednesday, however, prices rebounded in Asian trade as data from an industry group showed a smaller-than-expected build in U.S. crude stocks. The American Petroleum Institute (API) reported a crude build of 1.4 million barrels for the week ended September 9, smaller than the 3.8 million-barrel rise expected by analysts, Reuters reported. The U.S. government will issue official inventory data on Wednesday. Oil prices were higher in London trade however. Source: CNBC
