Thursday, March 28, 2024
Homeeurope marketsEuropean stocks finish mixed after ECB holds fire on rates

European stocks finish mixed after ECB holds fire on rates

European stocks finished mostly around the flatline on Thursday after the European Central Bank (ECB) left its key interest rate unchanged and as investors digest a slew of earnings from major companies.

The pan-European STOXX 600 came off of its earlier lows, to close down 0.07 percent; while sectors pointing in different directions.

Looking at Europe's main bourses, the U.K.'s FTSE 100 fell 0.43 percent at the close, with France's CAC also slipping 0.08 percent. Germany's DAX however popped 0.14 percent.

The ECB left its benchmark refinancing rate at 0 percent and its interest rate on deposit facility remained at -0.40 percent. The bank was widely expected to preserve its zero interest rate policy, but the market is anticipating further monetary policy stimulus further down the line from global central banks.

In the regular media conference hosted by the central bank, president Mario Draghi said he did not want to underplay the challenges facing the euro zone, including high levels of bad loans in the banking sector and geopolitical instability relating to terrorism and the Brexit vote.

Stocks fluctuated during the press conference, with banks recovering in afternoon trade. In individual banking stocks, several Italian banks outperformed fellow European lenders, with BMPS, UniCredit and Banco Popolare all up above 1.5 percent each. Meanwhile, most U.K. banks closed in the red.

RELATED ARTICLES
- Advertisment -

Most Popular