European shares extend losses after report on challenge to Draghi

martes 4 de noviembre de 2014 14:00 GYT
 

* FTSEurofirst 300 index closes 1 percent lower

* Index extends losses after report on ECB's Draghi

* Market under pressure as EU Commission cuts forecasts

* Energy companies fall sharply on weaker oil prices

By Atul Prakash

LONDON, Nov 4 (Reuters) - European shares extended losses in late trading on Tuesday after Reuters reported that central bankers in the euro area planned to challenge European Central Bank chief Mario Draghi over his secretive management style.

Division within the ECB, on whose policymaking council national governors hold a majority, could limit the euro zone central bank's capacity for bolder policy action to stave off deflation and spur growth in the 18 countries using the euro.

Markets have increasingly come to expect that disappointing economic numbers from Europe will eventually prompt the ECB to launch further stimulus measures to support the economy.

"Any concern that the ECB can act without the full support of the member nations is a substantial negative for Europe as a whole," said Lorne Baring, managing director at B Capital Wealth Management. "Any lack of support will create a big problem for the region."   Continuación...