European shares are lower Tuesday, as all eyes turn to US Federal Reserve Chairman Jerome Powell’s bi-annual testimony before congress later in the day. Investors will monitor his comments closely for any steer on future US interest rate moves.
By 1220 BST, the EUROSTOXX 600 was 0.26% lower, while the EUROSTOXX 50 fell 0.45%. Regional bourses were also negative. The German DAX lost 0.18%, the French CAC declined 0.38% and the Spanish IBEX was 0.60% in the red.
US Fed Powell’s testimony in focus
Later Tuesday, US Fed chairman Powell will address US lawmakers on Capitol Hill, where he’ll share details on Monetary Policy. Market participants will likely keep a close eye on any comments surrounding the future course of interest rates.
In addition, key topics including the US-China trade disagreement and inflation will also be on Powell, congress and investors’ minds.
Monetary Policy including interest rates, are a key area for investors as the future likely path of them, can help them assess their current and future financial investment plans.
While some investor caution has been triggered ahead of Powell’s appearance, there have still been plenty of other influences to support other stock movers, so far Tuesday.
Telia shares fell 4.08% to SEK39.27, after the Swedish telecoms operator announced the purchase of TDC’s Norwegian business for NOK21 billion.
Swedish manufacturer of outdoor power tools Husqvarna shares, lost 18.40% to hit SEK69.92 after reporting a surprise drop in its operating profit. The firm also voiced concerns over the potential negative impact from trade tariffs both in 2018 and 2019.
ThyssenKrupp shares, meanwhile, rose 8.35% to hit €22.32 after the German-based engineering firm’s chairman Ulrich Lehner resigned. The move suggests that a major restructure of the group could now go ahead.
SEB shares are also in the green after the Swedish bank’s latest earnings report impressed amid strong corporate demand. SEB shares rose 4.29% to SEK8.96.