Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

European stocks lower as Draghi warns on economy; Dax down 1.2%

Stock Markets Jun 09, 2016 04:54AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. European stocks lose ground on concern over global economy - European stocks fell for a second consecutive session on Thursday, as concern over the global economy continued to weigh on investor sentiment and European Central Bank (ECB) Mario Draghi called on leaders to act to support growth.

During European morning trade, the EURO STOXX 50 fell 0.94%, France’s CAC 40 traded down 1.03%, while Germany’s DAX 30 lost 1.23%.

Speaking in the Brussels Economic Forum, Draghi brought home the disconnect between monetary and fiscal policy and insisted that governments needed to do more to support the euro zone economy.

“There are many understandable political reasons to delay structural reform, but there are few good economic ones,” Draghi said.

“The cost of delay is simply too high,” he warned.

Draghi promised that the ECB would not undershoot its inflation objection for longer than is avoidable, but urged others to ensure that “output is returned to potential before subpar growth causes lasting damage.”

In other signs of weakness in the global economy, Japan saw core machinery orders tumble 11% in April, much worse than the 3.8% expected. The news, along with a stronger yen, sent the Nikkei down 0.97%.

In Germany, exports stagnated in April, though the read was better than the forecast for a 0.6% decline.

The motor of euro zone economy also showed weak domestic demand as imports unexpectedly fell.

Meanwhile, oil prices added to overnight gains on Thursday, climbing to a fresh 11-month high after data showed crude stockpiles in the U.S. fell for the third straight week last week.

In European equities, energy stocks were lower, as French oil and gas major Total SA (PA:TOTF) lost 1.82% and Italy’s ENI (MI:ENI) SpA fell 1.27%, while Norwegian rival Statoil (OL:STL) ASA traded down 0.86%.

Financial stocks added to losses. French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) fell 1.12% and 1.77%, respectively, while Germany’s Deutsche Bank (DE:DBKGn) dropped 1.43%.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) fell 1.35% and 0.47% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) gave up 0.84% and traded flat, respectively.

In London, FTSE 100 lost 0.87%. Vodafone (LON:VOD) captured headlines, tumbling more than 4% after the sale of its New Zealand business to Sky Network Television for $2.4 billion in shares and cash.

Miners were also under pressure. Anglo American (LON:AAL) and BHP Billiton (LON:BLT) slumped 6.22% and 2.27%, respectively, while Glencore (LON:GLEN) fell 1.89% and shares in Rio Tinto (LON:RIO) lost 1.45%.

Financial stocks were broadly lower, though the Royal Bank of Scotland (LON:RBS) edged up 0.04% . However, Lloyds Banking (LON:LLOY) gave up 0.75%, HSBC Holdings (LON:HSBA) lost 0.65% and Barclays (LON:BARC) fell 0.90%.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.26% decline, S&P 500 futures a 0.34% decrease, while the Nasdaq 100 futures indicated a 0.31% drop.

European stocks lower as Draghi warns on economy; Dax down 1.2%

Related Articles

Russian rouble nears 4-week high versus dollar
Russian rouble nears 4-week high versus dollar By Reuters - Aug 19, 2022

(This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine) MOSCOW (Reuters) - The rouble firmed to a near four-week high...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email