European stocks slumped after European Central Bank (ECB)
President Mario Draghi gave no sign of imminent monetary policy
easing and more strong US data added fuel to speculation the
Federal Reserve may begin tapering its stimulus.
Q3 US GDP grew at a 3.6% annual rate instead of the 2.8% pace
reported earlier, the Commerce Department said on Thursday.
Economists polled by Reuters had expected output would be revised
up to only a 3% rate.
US jobless claims fell by 23,000 last week to 298,000.
These data follow reports on Wednesday that included a
larger-than-expected gain in private payrolls and positive home
The ECB left its key lending rate unchanged at 0.25%, as
expected. It expects inflation at 1.4% in 2013, at 1.1% in 2014 and
at 1.3% in 2015, below the bank's target of 2%. The forecast for
2013 was a 0.1 percentage point cut from the bank's September
forecast, while for 2014 it was revised downwards by 0.2 percentage
In the UK, the Bank of England, also as forecast, left monetary
The UK Office for Budget Responsibility raised its 2013 growth
forecast to 1.4% from the 0.6% that it predicted in March. I also
said GDP will climb 2.4% in 2014. It had projected growth next year
Spanish stocks found some support from a credit rating outlook
upgrade by Moody's.
In ADR news, Credit Suisse (
) said it will sell its German private bank to ABN Amro's Bethman
The FTSE-100 was last down 0.18% at 6,498.33, the DAX down 0.61%
at 9,084.95 and the CAC-40 down 1.17% at 4,099.91.
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