Europe Stocks Trim Drop as Draghi Calls Economy's Recovery SolidBy
European stocks pared their decline after European Central Bank President Mario Draghi said the euro-area economy’s recovery is “solid and broad,” while warning that inflation wasn’t strong enough to consider tapering its stimulus program.
The Stoxx Europe 600 Index lost 0.2 percent at the close, after dropping as much as 0.5 percent earlier on declines in mining and energy stocks. The benchmark’s relative-strength index broke below 70 after rising to a 15-week high on Wednesday, a sign of more potential losses according to some technical analysts.
- While Draghi said growth is improving, he cautioned that “the risks surrounding the euro-area growth outlook, while moving toward a more balanced configuration, are still tilted to the downside,” in a press conference.
- Stoxx 600 miners dropped 2.7 percent, paced by Glencore Plc and Rio Tinto Group, as metals prices fell.
- The Stoxx 600 gauge on Wednesday completed its longest winning streak since February in a rally fueled by the outcome of France’s first-round vote.
- France’s presidential candidate Emmanuel Macron failed to make a successful start to his campaign for the runoff on May 7, according to a poll by Harris Interactive.
- Among shares active on earnings reports, Deutsche Bank AG fell 3.7 percent as the lender’s return to growth lagged behind the promise of CEO John Cryan.
- BASF SE dropped 1.8 percent as Chief Executive Officer Kurt Bock stayed cautious despite quarterly profit at a five-year high, reiterating existing 2017 targets that budget for political and economic risks from the U.S. to the U.K.
— With assistance by Elena Popina