London Stock Exchange
Toby Melville | Reuters
pan europe Stokes 600 It was down 0.8% in the early afternoon, with autos down 3% to lead losses as most major sectors and exchanges traded in negative territory. Oil and gas stocks bucked the trend, adding 0.8%.
Risk sentiment was dampened by upbeat signals from European Central Bank policy makers, with Bundesbank President Joachim Nagel telling a German newspaper that the ECB should continue to raise interest rates even as recession risks in Germany grow.
The minutes of the European Central Bank’s latest policy meeting will be published on Thursday, while investors will pay close attention to Eurozone PMIs on Tuesday.
Stocks in Asia Pacific It was mixed on Monday as caution prevailed, although Chinese markets rose afterwards China’s central bank cut lending rates.
US stock futures Early trade fell before the market after Standard & Poor’s 500 It snapped a four-week winning streak on Friday, as Wall Street looked ahead to Federal Reserve Chairman Jerome Powell’s comments on inflation at the central bank’s annual Jackson Hole Economic Symposium on Friday.
“We expect the market to move closer to the Jackson Hole Fed meeting for fear of a hawkish message that could trigger a sharp move away from risk. However, we believe the message will be more subtle, perhaps reassuring,” said Steve Englander, Global President. Foreign Exchange Research and Macro Strategy for North America at Standard Chartered.
“For the Fed, lowering inflation toward targets is non-negotiable. President Powell will likely state that the Fed will raise interest rates as much, and for as long as it takes, to bring down inflation.”
No major corporate earnings or economic data due out of Europe on Monday.
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