Economics
European Stocks Fall After ECB Report Dims Prospects of More QE
- Banks fall after ECB says QE will drag on profitability
- Actelion rallies after raising full-year profit projection
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European stocks declined after a report showing an improvement in the region’s lending conditions lowered the prospects for additional monetary stimulus.
After hovering near a two-month high in the first hour of trading, equities slid as a European Central Bank survey showed credit standards on loans to companies eased for the sixth straight quarter. Banks fell after the ECB said its quantitative-easing program will drag on profitability at those companies in the next six months. The report gives policy makers less cause to act when they meet this week, said Mirabaud Securities’ John Plassard.