European stocks head south on ECB policy statement

9 September 2016, 15:57
Eko Rediantoro

On Friday, European stocks moved down, as the European Central Bank’s fresh policy decision disappointed market participants and as dropping crude prices weighed on the energy sector having risen steeply on Thursday.

The EURO STOXX 50 decreased 0.10% during European morning trade, French CAC 40 tumbled 0.17%, German DAX 30 lost 0.36%.

On Thursday, European equities weakened after ECB President Mario Draghi told that the current monetary policy appears to be effective and the changes to the banks growth forecast can’t be regarded as substantial to warrant a decision to act.

The comments arose after the major bank left its benchmark interest rate at a record-minimum 0.0%, quite in line with market expectations.

The ECB also increased ts 2016 growth forecast from 1.6% to 1.7%, though moderately lowered its 2017 forecast from 1.7% to 1.6%.

Financial stocks traded mostly higher, as French lenders BNP Paribas as well as Societe Generale managed to earn 0.77% and 1.45% respectively. At the same time, German Commerzbank along with Deutsche Bank soared 1.44% and 2.28% respectively.

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