European stocks drop as Draghi effect quickly fades

By FXStreet FXStreet (Mumbai) – A minor rally in the European stock markets quickly ran out of steam as the ECB President Draghi offered nothing new to the markets via his speech in Brussels.

At the time of writing, the pan-European Euro Stoxx 600 was down almost 0.5%. The Germany’s DAX was down 0.5%, while France’s CAC was down 0.85%. London’s FTSE also traded lower by 0.6%.

Stock markets saw a brief rally along with bond prices after Draghi said the bank will reassess the need to do more easing at the December meeting. The odds of more easing increased after Draghi expressed concerns over the core inflation.

However, the Draghi effect did not last long enough. The bond prices trimmed gains, while the EUR recovered off lows and the stock markets turned lower.

Among Stoxx 600 index, shares in Rolls-Royce were down almost 20%. Glencore was down 6%, while shares in German firm RWE were down 8%. On the other side was the Austrian lender Raiffeisen Bank; which rose 4.2%. Shares in Carlsberg were up more than 2%.
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Source:: FX Street