By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets staged
broad-based losses on Tuesday, tracking losses in Asia, where the
Bank of Japan's latest monetary decision failed to boost market
optimism.
The Stoxx Europe 600 index lost 0.7% to 293.07 building on a
0.1% decline from Monday.
Shares of ICAP PLC gave up 4.1% after Credit Suisse cut the
interdealer broker to underperform from neutral.
Mining firms were also lower, as metals prices dropped across
the board. Shares of Anglo American PLC fell 2.5%, BHP Billiton PLC
(BHP) gave up 2.1% and Rio Tinto PLC (RIO) shaved off 1.6%.
For the broader European stock markets, investors took a hint
from Asia, where most bourses closed in the red after the Bank of
Japan's decision to keep its asset-buying and other policy elements
unchanged. The lack of action was widely expected, though some
market participants had hoped the central bank would extend its
low-price fund-supplying operation. The yen rose sharply against
the dollar after the decision and pushed stocks lower.
"By not announcing new easing measures today, BOJ has probably
done itself a favor in the long run. The economy is moving in the
right direction, and so far the correction in the financial markets
is not a threat to the recovery," analysts at Danske Bank said in a
note.
"It is important to understand that despite no announcement
today, BOJ is still easing aggressively. A massive amount of
liquidity will continue to be injected into the economy over the
coming months and monetary easing is still at an early stage," they
added.
Back in Europe, the European Central Bank's Outright Monetary
Transactions program was in the spotlight, as a two-day court
hearing got under way in Germany's constitutional court. The
hearing focuses on the legitimacy of the program, which the
Bundesbank says undermines central bank independence and infringes
the prohibition of monetary financing. See: High Noon for the euro
in Karlsruhe court
Germany's DAX 30 index dropped 0.6% to 8,257.45.
France's CAC 40 index gave up 0.5% to 3,846.86, while the U.K.'s
FTSE 100 index slid 0.6% to 6,362.46.
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