European Stock-Index Futures Retreat Before ECB Decision
European stocks fell for the third time in four days, as investors awaited the European Central Bank’s monetary policy decision and any hints on further stimulus from President Mario Draghi. U.S. index futures and Asian shares also declined.
The Stoxx Europe 600 Index slipped 0.5 percent to 334.6 at 9:09 a.m. in London. The benchmark gauge rose yesterday for the first time in three days as companies from Marks & Spencer Group Plc to Natixis SA reported better-than-estimated earnings. Standard & Poor’s 500 Index futures lost 0.2 percent today, while the MSCI Asia Pacific Index fell 0.6 percent.
The ECB is expected to hold rates at record lows when it meets for the first time since the Bank of Japan boosted its unprecedented stimulus, a move that fueled gains in the nation’s equities. The Bank of England is also seen holding rates today.
A flagging euro-area economy and increased monetary stimulus from the BOJ have put pressure on Europe’s policy makers to do more to support a recovery. More than half of the economists surveyed by Bloomberg News predict the ECB will eventually embark on large-scale sovereign-bond purchases.
Draghi has repeatedly said policy makers are unanimous in their willingness to add stimulus if needed to prevent a deflationary spiral of falling prices and households postponing spending.
Source: Bloomberg – European Stock-Index Futures Retreat Before ECB Decision
