European Markets Extend Recent Weakness

The majority of the European markets ended Wednesday’s session in the red, adding to the losses of the previous session. Technology stocks struggled after a worldwide cyber-attack. Investor sentiment also took a hit after the U.S. Senate decided to postpone voting on a new health-care bill. The move has traders concerned about President Trump’s ability to implement his policies.

The euro declined against its major opponents in the European session on Wednesday, after a media report showed that the market had misinterpreted remarks by the European Central Bank Mario Draghi as a signal towards reducing the monetary stimulus.

Draghi was intending to strike a balance between recognizing the bloc’s economic strength and the need for continued monetary support, Bloomberg reported citing ECB officials.

The ECB sources said that Draghi was aiming to strike a balance between the bloc’s economic growth and inflationary slowdown and not an imminent policy tightening.

Meanwhile, monetary stimulus may need to be withdrawn to some extent in future, Bank of England Governor Mark Carney said Wednesday, implying interest rates may be raised, altering his stance from earlier this month when the bank left the interest rate and asset purchases unchanged.

“Some removal of monetary stimulus is likely to become necessary if the trade-off facing the MPC continues to lessen and the policy decision accordingly becomes more conventional,” Carney said during a panel discussion at a European Central Bank forum on central banking in Sintra, Portugal.

The pan-European Stoxx Europe 600 index weakened by 0.02 percent. The Euro Stoxx 50 index of eurozone blue chip stocks decreased 0.05 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.12 percent.

The DAX of Germany dropped 0.19 percent and the CAC 40 of France fell 0.11 percent. The FTSE 100 of the U.K. declined 0.63 percent, but the SMI of Switzerland finished higher by 0.04 percent.

In Paris, Legrand rallied…

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