European shares fall as ECB starts buying bonds

Paris - European shares fell on Monday with investors booking recent lofty gains as the European Central Bank begins its programme of bond purchases, aimed at boosting inflation and growth.

The market has strongly rallied since the start of the year, with the FTSEurofirst 300 surging 14% in the run-up to the start of the ECB's quantitative easing programme, under which it will buy €60bn a month of bonds.

"It's 'buy the rumour, sell the news'. European stocks have jumped 15% since the start of the year and the positive impact from QE has broadly been priced in by now," Saxo Bank trader Pierre Martin said.