Europe close: Stocks brush off ECB PEPP 'recalibration'

(Sharecast News) - European stocks finished mostly higher on Thursday, despite fears over a slowdown in global growth as a result of the Delta variant of Covid-19.
Boosting investor sentiment, the European Central Bank announced a "moderate" reduction in its emergency bond buying programme, known as PEPP, for over the last quarter of 2021 - but said it was only a "recalibration".

"While some may be concerned that this is tapering under a different guise, it seems the markets are unconcerned given that the ongoing QE programme which will likely run for some time yet," said IG senior market analyst Josh Mahony.

"Instead, we saw the euro decline and eurozone markets head higher, with the promise of a supportive ECB helping to overshadow the decision to slightly dial down the emergency PEPP programme."

The pan-European Stoxx 600 index was down 0.06% at 467.57, alongside a 1.03% drop to 7,022.62 for the UK's FTSE 100.

Germany's DAX on the other hand rose 0.08% to 15,623.15.

In equity news, British budget airline easyJet slumped 10% after it revealed plans to raise £1.2bn and said it had rejected a takeover offer.

Animal genetics company Genus fell 7% with a fall of 10% as it warned that recent volatility in the Chinese porcine market will dent growth.

Assa Abloy jumped 5% after US lock maker Spectrum Brands said it would sell its hardware and home improvement division to the Swedish rival for $4.3bn in cash.

The firm reported a jump in full-year profit and revenue as it continued to win new customers.