European shares halt slide as Draghi pledges continued support
Posted by Shoaib-ur-Rehman Siddiqui
Speaking in a French radio interview Draghi said the ECB would keep monetary policy loose for as long as it takes to push up inflation in the euro zone from near zero towards the level of just under 2 percent targeted by the ECB.
At 0704 GMT, the pan-European FTSEurofirst 300 index was up 0.1 percent at 1,376.45 points, having shed nearly 2 percent over the previous two days.
After a raft of worse-than-expected economic data from euro zone countries, including German and French business surveys on Tuesday, investors were braced for more disappointment when Germany's Ifo business morale index is published at 0800 GMT.
The Ifo business climate index was expected to have fallen to 105.7 points in September from 106.3 points in the previous month.
'I think everybody will be careful as there is a real risk of disappointment,' said Mike Reuter, a broker at Tradition.
Some weak corporate updates also highlighted Europe's economic woes.
Shares in Adecco fell 3 percent after the world's largest temporary staffing company by sales, seen as a barometer of economic health, said sales in September were weaker than usual, most notably in Germany and France.
Dutch logistics company TNT Express tumbled nearly 10 percent after warning that low growth in Europe would hit margins in the third quarter.
It also announced it was setting aside 50 million euros to settle an anti-competitiveness investigation by French authorities. Further sapping demand for risk, the United States and its Arab allies bombed militant groups in Syria for the first time on Tuesday, opening a new front amid shifting Middle East alliances.
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