2017.07.2020:48:00UTC+00European Stocks Retreat as Euro Firms on Draghi Comments

European stocks dropped as investors claim exporters will suffer due to a stronger euro, following European Central Bank President Mario Draghi's remarks which buoyed the common currency.

The pan-European Stoxx 600 Index closed 0.4 percent lower. The benchmark trimmed a gain that hit 0.5 percent prior to when Draghi said officials will discuss altering the ECB's bond-buying program.

A stronger currency has become a concern for investors amid the second-quarter earnings season, as strategists at Deutsche Bank warned that every ten percent in the euro takes five percent off the STOXX 600's earnings.

Europe's basic resources sector was the largest decliner, losing 1.9 percent, with export-heavy aerospace defense companies and autos all under pressure.

European banks fell 0.4 percent, led lower by a 5.2 percent decline in Nordea's shares. The Nordic region's largest bank by market value dropped after posting second-quarter operating earnings below analysts' estimates. Danske Bank fell 1.4 percent following its quarterly earnings.

Germany's Lufthansa led the travel and leisure sector, which tumbled 8.6 percent. British budget airline easyJet dropped almost six percent following cautious comments on the outlook for summer pricing.

Technology stocks were led higher by Ingenico Group, rising over five percent, after reports that it will buy rival Bambora for 1.5 billion euros.