Europe Stocks Reverse Post-ECB Gains as Draghi Sees No More Cuts
- Stoxx 600 rose as much as 2.5% after rates slashed, QE boosted
- Carmakers lead Stoxx 600 decline as euro strengthens
How Are Markets Reacting to ECB Rate Cut?
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European stocks, which surged after the European Central Bank unveiled its stimulus package, reversed gains after President Mario Draghi said he doesn’t anticipate further rate cuts.
The Stoxx Europe 600 Index lost 1.7 percent at the close of trading, the biggest drop in two weeks. The benchmark earlier jumped as much as 2.5 percent after the ECB lowered its three main interest rates, increased bond purchases by a third and made corporate debt eligible. Shares then headed lower after Draghi’s comments stoked concern that the central bank has limited monetary-policy tools in the future.