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European Stocks Close Steady as Lagarde Warns of New Recession This content was published on January 21, 2021 - 17:24 January 21, 2021 - 17:24 (Bloomberg) European equities ended little changed as encouraging earnings reports were offset by ECB President Christine Lagarde’s warning that the euro-area economy is headed for a double-dip recession. The Stoxx 600 Index closed flat, undoing gains of as much as 0.8%. Technology stocks and other sectors more sensitive to the economy, like automakers and retail, outperformed. Real estate and energy shares were among the biggest decliners on Thursday. The region’s equity benchmark began paring gains as the euro rallied, after the European Central Bank decided to keep interest rates and stimulus efforts unchanged. Lagarde said the euro-area economy probably contracted at the end of last year, meaning that the bloc may be headed for a double-dip recession.

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