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Euro-zone stocks fall after report Bundesbank sees no need for fiscal stimulus now

Published 08/22/2019, 11:02 PM
Updated 08/22/2019, 11:10 PM
Euro-zone stocks fall after report Bundesbank sees no need for fiscal stimulus now
DE40
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STOXXE
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LONDON, Aug 22 (Reuters) - Euro-zone equities swung into
negative territory on Thursday afternoon after Bloomberg
reported the Bundesbank ruled out fiscal stimulus measures right
now, dealing a blow to hopes that Europe's top economy would
consider boosting spending.
At 1453 GMT, the euro-zone benchmark .STOXXE and Germany's
blue-chip DAX index .GDAXI were down 0.7%, hitting a day low
and reversing earlier gains.
The report citing two people familiar with the Bundesbank's
stance said Germany's central bank doesn't see a need for fiscal
stimulus at this time, even though it expects the economy to
shrink again this quarter.
Earlier this month, Reuters reported Germany was considering
ditching its long-cherished balanced budget policy to help
finance a costly climate protection programme with new debt, a
move that boosted euro-zone stocks.

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