LONDON: European stock markets fell at the start of trading on Wednesday, as the ECB prepared to launch radical stimulus measures aimed at boosting economic growth in the struggling eurozone.
It comes as a worried World Bank slashed its growth forecast for the global economy Tuesday, saying advanced economies were rebounding more slowly than expected and that low commodity prices continued to hurt other countries.
However official data Wednesday revealed that China's imports decreased in May at the slowest pace in more than 18 months -- in a possible sign domestic demand in the world's second-largest economy may be recovering.
The Asian country is a key driver of world growth and its demand for commodities has enormous implications for resource-rich nations from Australia to Nigeria.
At the start of trading on Wednesday, Frankfurt's DAX 30 stocks index dropped 0.4 percent to 10,246.44 points and the CAC 40 in Paris slid 0.3 percent to 4,461.28.
Outside the eurozone, London's FTSE 100 index dipped 0.1 percent to 6,277.03 points compared with Tuesday's close.
The European Central Bank takes a step into uncharted territory Wednesday when it buys bonds issued by companies, in a bid to also kickstart eurozone inflation.
The hope is that the companies will use the money to invest, thereby stimulating growth, creating jobs and helping push up prices.
Slow eurozone growth has seen inflation slide into negative territory, threatening a dangerous downward spiral of falling prices and wages.
Eurozone stock markets had rallied on Tuesday as official data showed economic growth in the single currency bloc was revised higher.
Comments
Comments are closed for this article.