By Sara Sjolin, MarketWatch LONDON (MarketWatch) — European stock markets staged broad-based losses on Tuesday, after some investors were disappointed that the Bank of Japan refrained from taking fresh steps to boost the economy. Investors were also cautious as a hearing on the legality of the European Central Bank’s bond-buying program got under way in Germany’s constitutional court. The Stoxx Europe 600 index XX:SXXP -1.61% lost 1.7% to 290.31, building on a 0.1% decline from Monday. Shares of ICAP PLC UK:IAP -3.78% gave up 3.6% after Credit Suisse cut the interdealer broker to underperform from neutral. Mining firms were also lower, as metals prices dropped across the board. Shares of Anglo American PLC UK:AAL -3.83% fell 3.9%, BHP Billiton PLC UK:BLT -2.44% AU:BHP +0.03% BHP -2.42% gave up 2.6% and Rio Tinto PLC UK:RIO -2.12% RIO -1.90% AU:RIO -0.38% shaved off 2.2%. For the broader European stock markets, investors took a hint from Asia, where most bourses closed in the red after the Bank of Japan’s decision to keep its asset-buying and other policy elements unchanged. The lack of action was widely expected, though some market participants had hoped the central bank would extend its low-price fund-supplying operation. The yen rose sharply against the dollar after the decision and pushed stocks lower. “By not announcing new easing measures today, BOJ has probably done itself a favor in the long run. The economy is moving in the right direction, and so far the correction in the financial markets is not a threat to the recovery,� analysts at Danske Bank said in a note. “It is important to understand that despite no announcement today, BOJ is still easing aggressively. A massive amount of liquidity will continue to be injected into the economy over the coming months and monetary easing is still at an early stage,� they added. In the U.S., stocks opened with sharp losses, as worries the Federal Reserve will begin to taper its quantitative easing program continued to haunt investors. Back in Europe, the ECB’s Outright Monetary Transactions program was in the spotlight, as a two-day court hearing got under way in Germany’s constitutional court. The hearing focuses on the legitimacy of the program, which the Bundesbank and several politicians say undermines central bank independence and infringes on a ban of monetary financing. See: High Noon for the euro in Karlsruhe court ECB President Mario Draghi said in an interview with German television that “not a single cent has been spent� on the program, but just the existence of such a mechanism is mainly responsible for the easing fears of the euro zone breaking up. Read: Just say no to ECB bond-buying: Buba chief After the OMT announcement last summer, government bond yields for struggling euro-zone countries such as Spain and Italy have come down significantly, while the stock Stoxx 600 in May closed higher for a 12th consecutive month. Most indexes, however, tanked on Tuesday, with Greece’s Athex Composite GR:GD -4.66% down 5.2% at 891.10. Reuters reported that the country will miss its asset sale target by about 1 billion euros ($1.3 billion) this year, after Russian energy giant Gazprom withdrew its interest in Greece’s natural gas firm DEPA on Monday. See: That hissing noise out of Greece could mean trouble for the euro zone Germany’s DAX 30 index DX:DAX -1.62% dropped 1.6% to 8,175.95 on Tuesday, weighed by Deutsche Bank AG DE:DBK -2.19% DB -2.13% , down 2.1%. France’s CAC 40 index FR:PX1 -1.70% gave up 1.8% to 3,796.49, while the U.K.’s FTSE 100 index UK:UKX -1.57% slid 1.6% to 6,296.57. Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.

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