Europe Stocks Little Changed as Comments on Draghi Give Support

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ECB Said to See Draghi Speech Misjudged by Markets

European stocks ended the session little changed, erasing an earlier drop after comments by Eurosystem officials damped speculation Mario Draghi had turned more hawkish.

The Stoxx Europe 600 Index closed at 385.82, reversing a decline of as much as 1 percent. The officials said the European Central Bank president’s speech on Tuesday was intended to strike a balance between recognizing the currency bloc’s economic strength and warning that monetary support is still needed.

Equities fell on Tuesday, while the euro and bond yields surged, as some investors speculated Draghi’s speech was an indication he sees room for paring monetary stimulus without tightening policy. The benchmark is poised to end four months of gains, in keeping with a trend that has seen it decline in nine of the past 10 Junes.

  • The Stoxx 600 Technology fell for a third session, in its longest losing streak in more than a month. Germany’s DAX Index earlier dropped below its 50-day moving average for the first time since April.
  • A cyberattack similar to WannaCry reached Asia after spreading from Europe to the U.S. overnight, hitting businesses, port operators and government systems.
  • Central banks are in focus this week, as Federal Reserve Chair Janet Yellen said after the European market closed Tuesday that asset valuations are “somewhat rich” when judged by some metrics.
  • Among shares active on corporate news, Nestle SA gained 1.3 percent after announcing a $21 billion share buyback plan to boost its stock price, in its first concession to activist investor Dan Loeb.
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