E.U. Stocks Slide as ECB Gears Up to Fight Inflation with Higher Rates
June 29, 2008 at 09:22 AM EDT
European stocks were gutted yesterday (Thursday) as banks took heavy losses in the face of more hawkish inflation comments from European Central Bank (ECB) President Jean-Claude Trichet that put pressure on already struggling financials. The Dow Jones Stoxx 600 closed down 2.6% to 288.48, the worst finish for the Eurozone index since October 2005. The FTSEurofirst 300 had a 2.5% drop, to close at 1,197.02 points, its largest one-day percentage drop since mid-March, Reuters reported. Regional indices faired the same, as the Paris-based CAC40 , London’s FTSE 100, Madrid’s IBEX 35 and the Frankfurt-based DAX all posted declines. “Overall, there is unprecedented confusion as investors seek…