U.K. Stocks Retreat After Draghi Says ECB Will Reassess StimulusInyoung Hwang
U.K. stocks fell after European Central Bank President Mario Draghi said policy makers will gauge the need for further stimulus at the beginning of 2015.
The FTSE 100 Index lost 37.26 points, or 0.6 percent, to 6,679.37 at the close of trading in London. The Governing Council will reassess the effects of existing monetary stimulus “early next year,” Draghi said at a press conference in Frankfurt. The ECB also lowered its forecasts for euro-area inflation and gross domestic product through 2016.
Separately, the Bank of England kept its key interest rate unchanged at a record-low 0.5 percent, as forecast by economists. The FTSE 100 lost 0.4 percent yesterday after George Osborne, chancellor of the exchequer, pledged in his Autumn Statement a revamp of the tax on buying houses and higher levies on multinational companies.
The broader FTSE All-Share Index lost 0.4 percent, while Ireland’s ISEQ Index gained 1 percent to close at its highest level since June 2008.
Travel companies rallied, with Ryanair Holdings Plc surging 8.4 percent after it raised its full-year profit forecast for the third time this year. EasyJet Plc climbed 2.9 percent after reporting more passengers in November. TUI Travel Plc gained 3.6 after saying full-year profit rose.
Miners and energy companies fell. Anglo American Plc declined 2.8 percent after Bank of America Corp. recommended selling shares of the iron-ore producer. Rio Tinto Group dropped 2.6 percent. Tullow Oil Plc lost 2.9 percent.