Global equity markets dipped on Tuesday and the euro firmed after a Reuters report saying central bankers in the euro zone plan to challenge European Central Bank President Mario Draghi’s leadership style. The bankers plan to challenge Draghi over what they see as his secretive management style and erratic communication and will urge him to act in a more collegial fashion, ECB sources said.
Equities in Europe had already pared initial gains before the report after the European Commission cut its growth forecasts for the region. The commission’s new outlook indicated the euro zone economy would expand by 0.8 percent this year and need another year to reach even a modest level of growth. The ECB, at a policy meeting on Thursday, is expected to hold off on fresh action, waiting for updated ECB staff forecasts next month and traction from its latest stimulus measures.
The euro strengthened after the report on the ECB, reaching a high of $1.2577 against the dollar as the report scaled back expectations of a loosening of ECB monetary policy. The euro was last up 0.5 percent at $1.2545. U.S. stocks touched session lows after the report on the ECB but managed to pare declines and end trading slightly lower.