LONDON – European stocks retreated on Thursday, following the mood in the global market as US Federal Reserve policymakers meet for a closely watched monetary policy summit.
The pan-European Stoxx 600 fell 0.7% at the start of trading, with retail stocks losing 1.4% to cause losses as all sectors and major exchanges slipped into the red.
Asia-Pacific equities also fell on Thursday, with Chinese stocks leading the losses, as South Korea’s central bank raised interest rates for the first time in nearly three years.
In the US, US equity futures were slightly lower at the start of pre-market trading after the S&P 500 closed Wednesday’s session at a new high.
The Fed’s Jackson Hole symposium kicks off Thursday. Markets will follow President Jerome Powell’s Friday closing remarks on when the central bank may start cutting its monetary stimulus program.
Back in Europe, European Central Bank chief economist Philip Lane said on Wednesday that the economic impact of the spread of the Covid-19 delta variant would likely be limited across the euro area, which remains on the continent. on track for a robust recovery until 2022.
In business news, Deutsche Bank’s asset management arm, DWS Group, is under investigation by U.S. regulators for allegations it has distorted its sustainability criteria, said The Wall Street Journal reported on Wednesday.
On the data front, German consumer sentiment plummeted as September approached. GfK’s consumer confidence index fell to -1.2 points from a revised -0.4 point in August, and fell below Reuters forecast of -0.7.
French business morale was roughly stable in August, with the country’s composite business confidence index standing at 110 from 113 in July, according to its official statistics agency.
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