Europe: ECB upset knocks European stocks

[MILAN/LONDON] European shares fell from five-month highs on Thursday after the European Central Bank changed its interest rate guidance and announced a new round of cheap bank loans sooner than expected, though with tougher terms than previous rounds.

"We didn't think they would go full out to announce TLTROs this time; that change in tone seems to worry the markets a little bit," said Donough Kilmurray, head of the investment strategy group for private wealth management at Goldman Sachs.

To be launched in September and end in March 2021, the loans would have a shorter maturity than previously and the rate will be variable and linked to the ECB's main refinancing rate. Banks aside, other cyclical sectors also sank. The export-oriented autos sector fell 2.3 per cent, extending a slide on worries over the sector's prospects amid slowing Chinese growth.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Europe: Sliding car stocks drag Europe down as investors hit the brakes[LONDON] European shares stalled on Wednesday as weak results from the troubled auto sector weighed and investor confidence in a rally that has sent stocks shooting up this year showed signs of fraying. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »

Global stocks stuck in worst run of the year ahead of ECBWorld stocks were stuck in their worst run of the year and bonds were on the rise on Thursday, as investors waited for confirmation that the ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »