August 22, 2019 / 3:08 PM / a month ago

Euro-zone stocks fall after report Bundesbank sees no need for fiscal stimulus now

LONDON (Reuters) - Euro-zone equities swung into negative territory on Thursday afternoon after Bloomberg reported the Bundesbank ruled out fiscal stimulus measures right now, dealing a blow to hopes that Europe’s top economy would consider boosting spending.

At 1453 GMT, the euro-zone benchmark .STOXXE and Germany's blue-chip DAX index .GDAXI were down 0.7%, hitting a day low and reversing earlier gains.

The report citing two people familiar with the Bundesbank’s stance said Germany’s central bank doesn’t see a need for fiscal stimulus at this time, even though it expects the economy to shrink again this quarter.

Earlier this month, Reuters reported Germany was considering ditching its long-cherished balanced budget policy to help finance a costly climate protection programme with new debt, a move that boosted euro-zone stocks.

Reporting by Josephine Mason; Editing by Thyagaraju Adinarayan

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