European Shares Slammed By Draghi Comments; DAX plunges 2%
Published Dec 08, 2011 12:50PM ET
After the close, the DAX 30 plummeted 2.01%, the FTSE 100 gave back 1.14% and the STOXX 50 collapsed 2.43%.
Earlier in the session, shares moved higher on hopes that the EU summit would find a solution to the economic woes. However, European Central Bank President Mario Dragni made it clear, during his monthly press conference, that he does not agree with bond buying to support stressed economies. This signaled lack of Central Bank support sending stocks spiraling lower. Not to mention the bearish aura cast by the G20 denying speculation of a USD600 billion International Monetary Fund lending facility for the euro zone.
Financial shares were under pressure with Commerzbank falling 9.54% , Intesa Sanpaolo giving back 8.46%, and Mediobanca plummeting 10% on the session.
Goldman Sachs reaffirmed its "sell" rating on Italian arms maker Finmeccancanica sending shares spiraling 9.4% lower.
Automakers experienced the bearish sentiment with Bayerische Motoren Werke dropping 3.4% and Fiat giving back 3.3%.
On the brighter side, Macquarie Group increased its rating on Banco Sabadell from "underperform" to "neutral" sending shares higher by 4.3%.
U.S. shares were not immune to Europe's woes. The Dow Jones Industrial Average dropped 0.81%, the S&P 500 gave back 1.12% and the Nasdaq fell 0.79%.
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Written By: Investing.com
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