U.S. Federal Reserve Chair Jerome Powell speaks at a news conference on interest rates, the economy and monetary policy actions on June 15, 2022.
Olivier Douliery- | Afp | Getty Images
LONDON — European stocks opened lower Tuesday as investors assess the economic and political outlook in the region and beyond.
The pan-European Stoxx 600 was down 0.5% as all sectors and major bourses traded in the red. Mining stocks led losses, down 0.97%, while autos also sank 0.9%.
Shares of German fashion house Hugo Boss plunged more than 10% after the company cut its full-year sales outlook, amid “persistent macroeconomic and geopolitical challenges.” Burberry share also traded 3.3% lower, a day after issuing a profit warning on weak luxury demand.
Meanwhile, Ocado jumped 18.5% after the British online grocer reported a lower first half loss
and raised its full-year guidance.
Global markets are digesting dovish comments from U.S. Federal Reserve Chair Jerome Powell in which he said the central bank will not wait until inflation hits 2% to cut interest rates, as the Fed’s policy works with “long and variable lags.”
So, “if you wait until inflation gets all the way down to 2%, you’ve probably waited too long,” he said Monday.
His comments, combined with expectations that the failed assassination attempt on Republican presidential candidate Donald Trump will lead to big gains for the party and friendlier fiscal policies from a Trump administration, sent Wall Street higher Monday.