European stocks fall as ECB says more rate cuts unlikely; banks outperform

jueves 10 de marzo de 2016 13:49 GYT
 

* ECB cuts rates, lifts size of asset purchase programme

* Shares turn lower as Draghi says more rate cuts unlikely

* Gains in Italy, Spain banks help sector outperform

* Auto, miners, oil stocks lead sectoral fallers (Adds details, closing prices)

By Danilo Masoni and Sudip Kar-Gupta

MILAN/LONDON, March 10 (Reuters) - European shares fell on Thursday after the European Central Bank President Mario Draghi said more rate cuts were unlikely, but bank shares outperformed on plans for a new round of cheap funding.

The pan-European FTSEurofirst 300 index fell 1.8 percent to 1,311.74 points, having earlier risen by as much as 2.6 percent after the ECB surprised investors with rate cuts and an expansion of its asset purchase programme.

Weaker oil prices also weighed on equity markets, sending the oil and gas stocks index down 3.2 percent, while miners also fell by 3.7 percent as copper prices slid on worries about Chinese demand.

Anthilia Capital fund manager Giuseppe Sersale said Draghi's remarks caught investors who were heavily selling the euro by surprise, sending the common currency jumping against the dollar and putting pressure on equities.   Continuación...