EUROPE MARKETS: European Stocks Fall, Beaten Down By BOJ Dismay

By Carla Mozee, MarketWatch

Electrolux surges after results

European stocks dropped Thursday, as the Bank of Japan's decision not to launch fresh stimulus measures shook markets.

Meanwhile, Spanish bank shares sold off on disappointment over financial results.

The Stoxx Europe 600 lost 1.2% to 344.32. No sector traded higher. Health care, financial and consumer services shares were among those posting the sharpest losses. The index on Wednesday rose 0.3% (http://www.marketwatch.com/story/european-stocks-slip-as-investors-sift-through-earnings-wait-for-fed-2016-04-27), scoring a second consecutive gain.

Japan jolt: Thursday's losses tracked declines in Asian markets, which came after the Bank of Japan left its current level of asset purchases unchanged (http://www.marketwatch.com/story/no-additional-stimulus-from-bank-of-japan-negative-rate-holds-2016-04-27) and kept interest rates on hold.

The "decision to forgo additional easing today came as a major disappointment to markets and resulted in a sharp appreciation of the yen," said Marcel Thieliant, Japan economist at Capital Economics, in a note.

"We think it is still only a question of when, not if, the Bank decides to step up the pace of easing," he added.

The yen surged 3% against the U.S. dollar , while the Nikkei Stock Average closed 3.6% lower. The greenback also lost ground against the euro , which was up 0.3% at $1.1354.

Spanish banks: Spain's IBEX 35 was yanked down 2.5% to 9,102.15, with shares of BBVA SA (BBVA) tumbling 8% after the bank posted a 54% drop in first-quarter net profit (http://www.marketwatch.com/story/bbva-net-profit-slides-54-on-year-2016-04-28). The profit of 709 million euros ($802.8 million) was below expectations.

CaixaBank SA (CABK.MC) stock also dragged on the IBEX. The lender's shares were down 4.9% after it said its first-quarter net profit fell 27%, missing expectations (http://www.marketwatch.com/story/caixabank-net-profit-falls-27-on-year-2016-04-28).

Indexes: Germany's DAX 30 was off 1.4% at 10,153.33, while France's CAC 40 fell 1.5% to 4,487.73.

Italy's FTSE MIB gave up 0.9% at 18,576.39, and the U.K.'s FTSE 100 declined 1.5% to 6,227.63.

Other movers: Electrolux AB (ELUXY) shares jumped 8.7% after the Swedish household appliance maker's first-quarter profit beat expectations (http://www.marketwatch.com/story/electrolux-profit-beats-views-on-higher-demand-2016-04-28).

Weir Group PLC (WEIR.LN) shares climbed 7.8% as the energy engineering services company forecast first-half profit to come in slightly ahead of market estimates. (http://www.marketwatch.com/story/weir-1h-profit-to-be-ahead-of-market-estimates-2016-04-28)

Deutsche Bank AG (DBK.XE) shares gained 2% although the German lender said first-quarter earnings fell 58% (http://www.marketwatch.com/story/deutsche-bank-income-down-58-on-tough-markets-2016-04-28).

(END) Dow Jones Newswires

April 28, 2016 05:20 ET (09:20 GMT)

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