The stock market drifted lower on Monday morning following remarks by European Central Bank president Mario Draghi indicating that Europe faces serious downside risks. Draghi also emphasized that it’s imperative for the countries in the Euro Zone to stay together — those that leave the group will face all sorts of difficulties, he warned, according to the Financial Times.
It’s also unclear how countries that would remain in a broken European Union would move forward if other countries in the union defect — “you never know how it ends really,” Draghi said.
Clearly those aren’t words that have inspired much confidence, and financial stocks are feeling the brunt of the pain today. After rising in early trading, they are now falling hard. Bank of America (BAC) fell 3.6% to $5.01 in afternoon trading. Citigroup (C) was off 5.3%.
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