London Stock Exchange
Toby Melville | Reuters
Pan-European Stoxx 600 Down 0.8% in early afternoon, autos fell 3% and suffered losses as most sectors and major bourses traded in negative territory. Oil and gas stocks bucked the trend by adding 0.8%.
Risk sentiment was tempered by hawkish signals from ECB policymakers, with Bundesbank President Joachim Nagel telling a German newspaper that the ECB should continue raising interest rates even as recession risks rose in Germany.
Minutes from the ECB’s most recent policy meeting will be released on Thursday, while investors will focus on euro zone flash PMIs on Tuesday.
Asia-Pacific stocks Monday was mixed as caution prevailed, although Chinese markets later rose China’s central bank has cut its key lending rates.
US stock futures It then fell in early market trade S&P 500 Wall Street snapped a four-week winning streak on Friday as it looked ahead to Fed Chairman Jerome Powell’s comments on inflation at the central bank’s annual Jackson Hole Economic Symposium.
“We expect the market to approach the Federal Reserve’s Jackson Hole meeting, fearing a hawkish message that could remove a sharp risk. However, we think the news will be more nuanced and optimistic,” said global president Steve Englander. FX Research and North America Macro Strategy at Standard Chartered.
“For the Fed, reducing inflation toward targets is non-negotiable. Chairman Powell will say how long it will take for the Fed to reduce inflation, and for how long.”
There were no major corporate earnings or economic data releases from Europe on Monday.