November 3rd, 2011
10:38 AM ET

Europe heading toward mild recession, ECB chief says

Slow growth in Europe is heading the continent toward "a mild recession by year's end," European Central Bank President Mario Draghi said Thursday.

His comments came as the ECB cut its key interest rate - from 1.5% to 1.25% - for the first time in two years, reversing a direction set earlier this year. Less than four months go, it raised the rate in an effort to battle inflation.

Stocks jumped on the news of the rate cut. As of about 10 a.m. ET, the Dow Jones industrial average had spiked 127 points, or 1%. Britain's FTSE 100 rose 1.2%, the DAX in Germany spiked 3.7% and France's CAC 40 gained 2.4%. The euro also gained traction, rising 0.4% versus the dollar.

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Filed under: Business • Economy
soundoff (7 Responses)
  1. phunk


    November 3, 2011 at 10:45 am | Report abuse |
  2. citizen

    Watch out for a guy named DaWayne driving a McDonalds semi-truck. He will hit you in the parking lot.

    November 3, 2011 at 11:24 am | Report abuse |
  3. citizen

    In my opinion Pat*rick at Travell*ers Insu*ance, you are a mendacious leach on society.

    November 3, 2011 at 11:30 am | Report abuse |
  4. citizen

    Your big fancy brick and steel office building was built by hard working Americans while you sit and want something for nothing. Greedy corporations and the people who dont do any thing for, but are employed by them suck azz.

    November 3, 2011 at 11:35 am | Report abuse |
  5. Bimbo the Birthday Clown

    MILD recession, eh? I'm sure that will be a mild comfort to anyone who loses their job.

    November 3, 2011 at 1:04 pm | Report abuse |
  6. banasy©

    That mildly amused me.

    November 3, 2011 at 1:33 pm | Report abuse |
  7. banasy©

    In other news, a partly sunny full-blown economic depression is on it's way...

    November 3, 2011 at 2:50 pm | Report abuse |