ROLLERCOASTER: European stocks yo-yo after ECB meeting
European stocks ended Thursday largely in the red after a rollercoaster day, driven by the ECB's decision to cut rates and expand its bond buying programme.
On the surface the European trading day doesn't look too wild, with the largest mover the DAX in Germany, which dropped by 2.35%. Elsewhere losses were limited to around 1.5%, while Spain's biggest index closed in the green, up by 0.04%.
However, the closing numbers mask what was a pretty crazy day in the markets, thanks to Mario Draghi and the ECB. Prior to the bank announcing its decision, shares were broadly flat, but as soon as the rate cut was announced, stocks across the continent jumped.
The DAX popped as much as 3%, while Italy's FTSE MIB saw gains in excess of 4% in the immediate aftermath.
But soon after Mario Draghi began speaking to the press, telling them that further rate cuts are unlikely, stocks began to tumble, and plunged into the red. Here's how that rollercoaster ride looked on the STOXX 600 broad index:
Here's Germany's biggest index:
France's CAC followed a very similar pattern:
However in one sector, shares outperformed on Thursday. Bank stocks popped on reassurance from Draghi that he doesn't believe bank profitability is being affected by rate cuts. Here's how the Euro Stoxx banking index looked at the close:
