The outcome of the ECB Governing Council disappointed European stock markets


European shares ended Thursday trading slightly lower. As the European Central Bank, there has been no new impetus that could be translated into an increase in demand for stocks beyond expectations.

The pan-European STOXX 600 stock index lost 0.6 percent on Thursday. The decline is mainly due to the outcome of the Governing Council of the European Central Bank, which did not produce any surprising decision. The ECB has confirmed that it intends to continue asset purchases in the volume previously declared. The European Central Bank‘s base interest rates also remained unchanged.

Markets have watched closely as the Governing Council takes a stand against the euro against the dollar, which is about 10 percent stronger than in the spring. But Christine Lagarde said the ECB does not target the euro rate and the inflation rate is a priority for it. The eurozone fell into moderate deflation in July, but this was not enough reason for the ECB to loosen its monetary policy more.

The fall in European shares was also reflected in ongoing negotiations between the European Commission and the UK government to organize relations between London and Brussels after the Brexit transition period. The negotiations are moving towards a no deal rather than finding an acceptable compromise for both sides.


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