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German Stocks Drop as Draghi Says Measures ‘on the Shelf’

German stocks fell, erasing earlier gains, as European Central Bank President Mario Draghi said he sees “downside” risks to the euro-area economy and additional policy measures are being kept “on the shelf.”

The DAX Index (DAX) slipped 0.4 percent to 8,163.29 at 3:12 p.m. in Frankfurt, having earlier risen as much as 0.5 percent. The HDAX Index also retreated 0.4 percent.

The ECB kept its benchmark interest rate unchanged at 0.5 percent today. That matched the forecasts of 57 of 59 economists surveyed by Bloomberg News. Morgan Stanley and IHS Global Insight had predicted a quarter-point reduction.

The Bank of England left its bond-purchase target at 375 billion pounds ($579 billion) and its key interest rate at 0.5 percent, as predicted by economists surveyed by Bloomberg.

A report from Germany’s Economy Ministry today showed that factory orders in Europe’s largest economy decreased 2.3 percent in April, a bigger decline than the 1 percent drop forecast in a Bloomberg survey. They climbed a revised 2.3 percent in March.

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

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