European Markets Shrug At Stimulus Hints From Draghi

(RTTNews) - European stocks began the new year with a lackluster session due to lingering concerns about the region's sluggish economy.

Comments from European Central Bank President Mario Draghi hinting at full-scale quantitative easing failed to inspire much buying interest today, as eurozone manufacturing activity grew at a slower pace in December than previously estimated.

Draghi said that the risk of deflation in the euro area has risen over the months and the central bank is preparing to react to such a threat, if necessary.

In an interview with German financial daily Handelsblatt, published on Friday, Draghi said, "The risk that we do not fulfill our mandate of price stability is higher than six months ago."

Meanwhile, a final reading released Friday by Markit showed its euro zone manufacturing purchasing managers' index rose to 50.6, compared with a preliminary estimate of 50.8.

The Euro Stoxx 50 index of eurozone bluechip stocks was down 0.22 percent, and is up only 2.6 percent compared to the first trading day of 2014.

The German DAX dropped 0.42 percent, while the French CAC 40 declined 0.48 percent and the FTSE 100 index of the U.K. lost 0.28. The Swiss market remained closed today.

In Frankfurt, car makers struggled, while big banks Commerzbank and Deutsche Bank posted solid gains.

Telefonica Deutschland Holding said that it has closed the sale of yourfone GmbH to German telecom company Drillisch AG.

Telefonica Deutschland is part of Spanish telecom group Telefónica S.A, whose shares were slightly lower.

In economic news, U.K. mortgage approvals declined to a 17-month low in November mirroring the slowdown in housing market activity, while consumer credit increased at the fastest pace since 2008.