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Draghi Letdown Sends European Equities Down 11%

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Just last month, Europe’s stocks were trading near their highest levels in six years, with optimism spreading that central-bank stimulus would ignite the economy. Much has changed.

The Stoxx Europe 600 Index plunged the most in almost three years yesterday, closing down 11 percent from its June high to meet the definition of a correction. At one point, Greece’s ASE Index was down 10 percent from the previous day’s close, finishing with a loss of 6.3 percent. Italy’s FTSE MIB Index fell 4.4 percent and Portugal’s PSI 20 Index hit a two-year low.