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European stocks drop as Draghi disappointment persists ahead of non-farm payrolls

FXStreet (Mumbai) - European stocks extended losses today after suffering biggest decline since August on Thursday as investors remain depressed due to Draghi’s decision to hold QE size unchanged.

The pan-European Euro Stoxx 600 index currently trades 0.40% lower around 370.57 levels. Among regional indices, Germany’s DAX was down 0.60%, while France’s CAC was down 0.70%. The mining-heavy UK’s FTSE index was down 0.40%.

Shares in Berkeley group PLC were the top performer in the Euro Stoxx 600 index; up 7%. The minus side had the shares in National Bank of Greece; down 20.59%.

Hopes of a strong new round of ECB stimulus had pushed the Stoxx 600 to a three-month high on Monday. The investors now await the US November non-farm payrolls report, which is likely to show the economy added 200K jobs, while the unemployment rate stayed unchanged at 5%. Traders would also see if the average weekly earnings are holding up well.

However, it may turn out to be a non-event since the markets consider the liftoff as a done deal. The markets could react to the data only, if the payrolls report (surprisingly strong/weak) triggers a major adjustment in the Fed rate hike bets.

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