LONDON (Reuters) - Euro-zone equities swung into negative territory on Thursday afternoon after Bloomberg reported the Bundesbank ruled out fiscal stimulus measures right now, dealing a blow to hopes that Europe’s top economy would consider boosting spending.
At 1453 GMT, the euro-zone benchmark .STOXXE and Germany's blue-chip DAX index .GDAXI were down 0.7%, hitting a day low and reversing earlier gains.
The report citing two people familiar with the Bundesbank’s stance said Germany’s central bank doesn’t see a need for fiscal stimulus at this time, even though it expects the economy to shrink again this quarter.
Earlier this month, Reuters reported Germany was considering ditching its long-cherished balanced budget policy to help finance a costly climate protection program with new debt, a move that boosted euro-zone stocks.
Reporting by Josephine Mason; Editing by Thyagaraju Adinarayan