Hopes for policy easing by the European Central Bank were deflated following comments from German law and policy makers, sending the euro off highs against the dollar and stocks lower while downbeat manufacturing data left a lot to be desired.
The German economy minister said Wednesday that offering the euro zone's new bailout fund, the European Stability Mechanism, a banking license wasn't the way forward. It had been mooted that this option would allow the bailout fund access to unlimited credit from the ECB and would ultimately help calm the euro zone's financial markets.
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