Pin It

European markets fall and euro is near a two-year high after Mario Draghi says that tapering will be discussed in the autumn.

Many analysts foresee a tightening in policy next year. ECB policymakers believe that the October meeting will be suitable for a decision on the QE program.
"If the outlook becomes less favorable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the program in terms of size and/or duration," the ECB said in its policy announcement alongside its rate decision.
The pan-European Stoxx 600 was down 0.7 percent with most sectors moving south.Auto stocks led the falls in early-afternoon trade, down by more than 3 percent. Valeo dragged down the sector, down by 6 percent, after its first half year result came in short of analysts' expectations. ACS was down 6 percent after reports that it is considering a bid for the Italian family's Atlantia.
Materials stocks, among the worst performers
Telecoms were the only sector moving slightly higher on 0.09 percent, also on earnings news.Meanwhile, Vodafone reported better-than-expected revenue growth for its first quarter, mainly thanks to the Italian and Spanish markets. Its shares were up by 1.3 percent. Materials stocks and construction were also among the worst performers, down by 1.5 percent.
Metso, the worst-performing stock
Paysafe rose to the top of the European benchmark, up by nearly 7 percent, after Blackstone and CVC Capital made a $3.71 billion bid for the company. Metso (down by 7 percent) was the worst-performing stock, after reporting second quarter results below expectations.

July 21 page 001


Contact Us