Europe’s stock markets PLUNGE amid fears ECB has run out of tools to save eurozone
THE European Central Bank (ECB) has shocked markets by today taking no action to prop up the eurozone, despite warning signs the economy is struggling to cope with Britain’s vote to leave the European Union (EU).
By LANA CLEMENTS
Express.co.uk
Thu, Sep 8, 2016
Stock markets in Europe were in the red after the ECB unexpectedly left policy unchanged amid the worrying outlook for the eurozone.
A flurry of dire data in the weeks after the Brexit vote has pointed towards a sharp slowdown for the bloc, prompting expectations the central bank would take decisive action.
Investors’ disappointment was evident with a 1.2 per cent plunge in Germany’s top stock market the DAX and 1.1 per cent fall in France’s equivalent the CAC.
Chief of the central bank Mario Draghi revised economic forecasts for Europe down in 2017 and 2018, as Brexit takes its toll on the bloc.
He said: “The economic recovery in the euro area is expected to be dampened by still subdued foreign demand, partly related to the uncertainties following the UK referendum outcome, the necessary balance sheet adjustments in a number of sectors and a sluggish pace of implementation of structural reforms.”
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