European markets dip into negative territory ahead of speech by Fed’s Powell
Stocks News
European markets turned negative Thursday morning, losing recent positive momentum, as investors focused on the forthcoming speech by the Federal Reserve’s Chairman Jerome Powell.
The pan-European Stoxx 600 index opened marginally higher before dipping into negative territory to trade 0.12% lower.
Shares of French conglomerate Bouygues were up 2.3% after it reported a lower-than-expected operating loss in its first-half results. Meanwhile, shares of engines maker Rolls Royce fell 6% after it posted a £3.2 billion ($4.2 billion) pretax loss for the first half of the year, said it planned asset sales and announced the departure of its CFO.
Shares of advertising giant WPP were up over 4% after the company posted a lower-than-expected fall in underlying net sales and resumed its dividend.
Global investors are looking ahead to the upcoming speech stateside from the Fed’s Powell, where he is expected to introduce a new pandemic-era tool to combat the economic impact of Covid-19 and foster inflation in the U.S. The Fed has had a 2% inflation target, but in the decade since the last financial crisis it has more often than not seen inflation fall below its target. Powell will speak during a virtual version of the Fed’s annual Jackson Hole, Wyoming, conference.
Meanwhile, shares in Asia Pacific were mixed in Thursday trade as the latest data showed China’s economy continued to recover.
Oil markets are in focus Thursday also, after oil rigs and refineries were shut ahead of a massive hurricane expected to cross Texas and Louisiana.
On the coronavirus front, biotech firm Moderna announced Wednesday that its potential vaccine generated a promising immune response in elderly patients during an early stage clinical trial.
