UPDATE 2-European shares sink as Draghi disappoints rate-cut bulls

(Updates to close)
* Draghi's comments seen as less dovish by markets
* German stocks hit by weak data, earnings
* Autos dip after dismal Nissan, Ford readout
* AB InBev, AstraZeneca gain after results

(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
By Sruthi Shankar and Medha Singh
July 25 (Reuters) - European stock markets turned into a sea
of red on Thursday after the European Central Bank signalled
monetary policy easing ahead, but disappointed investors who
sought more clarity on its action to stimulate a slowing
economy.
Investors initially cheered the ECB's policy statement,
which said the central bank saw rates at present or lower levels
through mid-2020 and was considering other easing options,
lifting the pan-European STOXX 600 index .STOXX to its highest
level in more than a year.
Howeve, the gains soon evaporated and the index tumbled more
than 0.5% after ECB chief Mario Draghi said the risk of a
recession in the euro zone was "pretty low", policymakers did
not discuss interest rate cuts at Thursday's meeting and they
would wait for more data before "taking action."
"He made it clear that these things presented in the
statement are options and not necessarily forthcoming, so that
was a bit of a disappointment for markets," said Rabobank
strategist Bas Van Geffen. "He wasn't as vocal with what the
next steps would be at the central bank."
Expectations of easier monetary policy have spurred a rally
in stocks globally since steep falls in May, but analysts warn
it may now be difficult with expectations for interest rate cuts
from the ECB and the U.S. Federal Reserve already priced in.
"The danger is that investors have become too complacent,
relying fully on accommodative monetary policy, and ignoring the
late-cycle risks that are lingering in the background," said
Wolfgang Bauer, fixed income manager at M&G Investments.
German shares .GDAXI suffered the biggest blow, falling
1.3%. A survey showed Germany's business morale plunged in June,
stoking fears a manufacturing crisis is pulling Europe's largest
economy towards recession. Car parts maker Hella HLE.DE , down about 6%, emerged as
the latest company to warn of a deteriorating environment in the
sector, with weak results from U.S. automaker Ford Motor Co
F.N and Japan's Nissan Motor Co 7201.T adding to woes.
Banks .SX7P ended 0.2% lower after shooting up earlier in
the day on news the ECB discussed tiered deposit rates, which
would mean banks are exempted in part from paying the ECB's 0.4%
annual charge on their excess reserves, boosting their profits.
Helping limit losses on Britain's FTSE 100 .FTSE was a
7.7% jump in drugmaker AstraZeneca Plc's AZN.L shares after it
raised its product sales forecast for 2019. Europe's healthcare
index .SXDP was among the few sectors trading higher.
Other gainers included shares of the world's largest brewer
Anheuser-Busch InBev ABI.BR , up 4.3%, after reporting the
fastest beer sales growth in five years and defence and
aerospace group Cobham COB.L , which topped the STOXX 600 with
a 35% surge after U.S. private equity group Advent International
agreed to buy it for 4 billion pounds ($5 billion).