CORRECTED-European shares post sharpest one-day drop in 15 months on ECB

jueves 2 de octubre de 2014 13:33 GYT

(Corrects percentage drop in first paragraph to 19 months from 18 months, and percentage drop in FTSEurofirst in second paragraph and headline to 15 months from seven months)

* FTSEurofirst 300 ends 2.4 pct lower, hits 6-week low

* Disappointment following lack of details on ECB's ABS plan

* Banking, energy sectors feature among top decliners

By Atul Prakash

LONDON, Oct 2 (Reuters) - European shares fell sharply on Thursday, with Italy's benchmark index recording its biggest one-day percentage drop in 19 months, after the European Central Bank gave fewer details than the market had expected about its plan to buy secured debt.

The pan-European FTSEurofirst 300 index closed 2.4 percent lower at 1,335.11 points, the biggest percentage drop in 15 months, while Italy's FTSE MIB index fell 3.9 percent to 19,894.88 after the ECB's announcements.

The central bank would begin to buy covered bonds (CB), a form of secured debt, from banks in mid-October and purchase asset-backed securities (ABS) at some point in the fourth quarter of the year, ECB President Mario Draghi said, despite misgivings in Germany and elsewhere.

"Draghi confirmed that purchases will take place at least over the next two years, but disappointed investors by not confirming the size of purchases. Overall, today's ECB meeting confirms that the governing council is now in wait-and-see mode," Azad Zangana, European economist at Schroders, said.   Continuación...