Europe Markets: European stocks edge lower, euro rises as ECB lifts forecasts without talking down currency

European stocks edged lower and the euro rose on Thursday, as the European Central Bank kept interest rates unchanged and offered a slightly more optimistic view of the economy. Read More...

European Central Bank President Christine Lagarde

ECB/YouTube

European stocks edged lower and the euro rose on Thursday, as the European Central Bank kept interest rates unchanged and offered a slightly more optimistic view of the economy.

Up 1.6% on Wednesday, the Stoxx Europe 600 SXXP, -0.45% declined 0.3%.

The ECB lifted its estimate for the eurozone economy this year, now seeing a contraction of 8% versus its previous estimate of an 8.7% drop, as it left 2021 and 2022 forecasts mostly unchanged.

During her introductory comments, ECB President Christine Lagarde did not mention the recent strength in the euro EURUSD, +0.81%.

Asked by a reporter, Lagarde said the ECB’s governing council discussed the euro appreciation but said it doesn’t “target the exchange rate.” Lagarde said the ECB will have to “monitor carefully” the rate since it impacts inflation.

The euro traded at $1.1891, vs. $1.1804 on Wednesday.