Dax and Ibex climb as ECB cuts growth forecast
City Index December 6, 2012 10:15 PM
<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.
Learn about the markets and find spread betting tips at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.