European stocks, which surged after the European Central Bank unveiled its stimulus package, reversed gains after President Mario Draghi said he doesn’t anticipate further rate cuts.
The Stoxx Europe 600 Index lost 1.7 percent at the close of trading, the biggest drop in two weeks. The benchmark earlier jumped as much as 2.5 percent after the ECB lowered its three main interest rates, increased bond purchases by a third and made corporate debt eligible. Shares then headed lower after Draghi’s comments stoked concern that the central bank has limited monetary-policy tools in the future.
The volume of Stoxx 600 shares changing hands was 31 percent higher than the 30-day average, while a gauge of euro-area stock volatility erased a decline of as much as 14 percent.
Speculation of central-bank action and a rally in miners had boosted the Stoxx 600 up 12 percent from a 2013 low reached last month through yesterday. All industry groups declined today, except real-estate shares.