Stock indices traded higher after comments by the ECB President Mario Draghi. The European Central Bank (ECB) President Mario Draghi said in Jackson Hole on Friday the ECB could add new stimulus measures should inflation decline further. He also said inflation expectations were showing a significant fall.

Ifo released its indices for Germany. The Ifo Business Climate Index declined to 106.3 in August from 108.0 in July, missing expectations for a drop to 107.1.

The Ifo Current Assessment decreased to 111.1 in August from 112.9 in July.

The Ifo Expectations dropped to 101.7 in August from 103.4 in July.

French President Francois Hollande asked Prime Minister Manuel Valls to form a new government.

Markets in the UK are closed for a public holiday.

Current figures:

Name Price Change Change %

FTSE 100 closed

DAX 9,436.79 +97.62 +1.05%

CAC 40 4,300.55 +47.75 +1.12%