LONDON — European shares turned flat on Friday, as concerns resurfaced over political hurdles which could hinder any fresh stimulus measures from the European Central Bank (ECB) to fight the region's sovereign debt crisis.
The FTSEurofirst 300 index at one stage slipped by
0.1 percent, before edging back to trade flat at 1,042.62
points.
The index had risen 2.4 percent on Thursday, as equity
markets rallied after ECB President Mario Draghi pledged to take
all necessary steps to protect the euro zone from collapse.
However, traders and investors had warned the rally could be
short-lived, given that European policymakers have previously
disagreed on the details of how to combat the region’s sovereign
debt crisis.
“Many economists believe the ECB’s potential solution to be
somewhat short term and may not provide a viable long term
solution. This morning we saw a reminder of the challenge ahead
with the release of Spanish unemployment showing a massive 24.6
percent, the highest on record,” said Lee McDarby, head of
dealing at Investec Corporate Treasury.
