Dax and Ibex climb as ECB cuts growth forecast

<p>The German Dax and Madrid Ibex have both made gains after Mario Draghi announced the ECB is revising down its growth forecasts.</p>

Both the German Dax and Madrid Ibex have advanced in trading this evening (December 6th) after president of the European Central Bank (ECB) Mario Draghi announced the institution is revising down its growth forecasts for the eurozone in 2012, 2013 and 2014.

Mr Draghi claimed the economic weakness affecting the single currency region will extend into 2013.

According to the ECB chief, the bank is anticipating the collective economy of the 17 member states will contract by around 0.5 per cent in 2012, before recovering later the following year.

Expansion forecasts for 2013 has been lowered to between -0.9 and 0.4 per cent and projections for 2014 have been revised down to between 0.2 and 2.2 per cent.

Due to rising gas and electricity prices, higher tax and falling inflation levels, the ECB has also kept rates the same.

At 16:45 GMT, the Dax rose by 1.1 per cent to 7536.4 points and the Madrid Ibex increased by 0.3 per cent to 7909.4 points.

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