European stocks cut losses after expected slight reduction in ECB stimulus

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Por Sruthi Shankar y Ambar Warrick

Sep 9 (Reuters) – Euro zone stocks rebounded from session lows and closed little changed on Thursday after the European Central Bank indicated it will only slightly reduce its purchases of emergency bonds in the next quarter, as expected. the market.

* After losing 0.9% in morning trading, the pan-European STOXX 600 index closed almost unchanged at around 467.57 points. In the last two days it had fallen by 1.5% for fear of a tighter than expected ECB.

* Interest rate sensitive banking stocks rose 0.2%, and real estate led gains with a 1% advance.

* While taking a small step towards reducing emergency aid, the ECB gave no signals on its next policy move, including how it might dismantle the Pandemic Emergency Purchase Program (PEPP) for 1.85 trillion euros, which has kept borrowing costs low for governments and businesses.

* “Today’s meeting confirms our previous expectations that the PEPP will end after March. That said, the ECB is still clearly data-dependent and kept all options open for December,” Rabobank analysts wrote in a note.

* “That desire to remain flexible was also highlighted by avoiding the term ‘reduction’ (of stimuli) and the message that today was not a turning point for the PEPP,” he added.

* Britain’s FTSE 100 led losses among regional indices, declining 1%.

* British airline easyJet lost 10.2%, leading declines in the STOXX 600, after rejecting an approach for a Wizz Air acquisition. Rival IAG, which owns British Airways, lost 1.1%, while Wizz Air fell 1.2%, weighing down the broader travel and leisure index.

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