By Steve Goldstein, MarketWatch
European stocks traded lower, with aggressive action from the European Central Bank not enough to keep equities higher after a strong run.
Having bounced 32% from the March lows, the Stoxx 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.90%
The German DAX /zigman2/quotes/210597999/delayed DX:DAX +1.34% , the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.85% and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.52%
The ECB opted to expand its pandemic emergency purchase program by €600 billion rather than the €500 billion consensus as it also said it would reinvest the proceeds of maturing securities and extended the expiration date of the program.
“The ECB delivered even more than expected both with the size of the add-on to the PEPP and the extension of the program to June 2021,” said Esty Dwek, head of market strategy at Natixis Investment Solutions.
“In our view, this is yet another step in support of more cooperation across Europe and can only be welcomed by markets. It should be good for risk assets, and should support the recent rally of European assets as they play catch up with the U.S.”
The ECB move did lower Italian bond yields /zigman2/quotes/211347230/realtime BX:TMBMKIT-10Y +3.29% even if the gain in stocks didn’t last.
French conglomerate LVMH Moët Hennessy Louis Vuitton /zigman2/quotes/201350549/delayed FR:MC +2.16% shares slipped 1.5% after saying “on this occasion” it is not considering buying luxury retailer Tiffany shares “on the market” after a board meeting. Women’s Wear Daily has reported that LVMH’s planned takeover of Tiffany was in jeopardy.
Spirits maker Rémy Cointreau /zigman2/quotes/206802273/delayed FR:RCO +0.18% rallied 10% as the company said it expects a strong second half of the year and presented its longer-term goals that include an operating margin of 33% by 2030. Its fiscal year ending March profit slumped 29% on a 21% operating margin.
Lookers /zigman2/quotes/207240651/delayed UK:LOOK -4.01% shares rose nearly 9% as the U.K. and Ireland car dealership chain said it would cut up to 1,500 jobs. Separately, U.K. car sales plunged 89% in May, a trade group reported.