European Stocks Steady With Focus on PMI Data, Fed; Aegon Rises
European stocks were muted after three days of gains as investors awaited business activity data, with focus also on the Federal Reserve’s Jackson Hole economic symposium.
The Stoxx Europe 600 Index was little changed at 8:16 a.m. in London. Energy and industrial sectors advanced, while consumer and media shares were the biggest laggards.
Aegon Ltd shares rose 6.8% as the insurer reported operating profit for the first half-year that beat the average analyst estimate. Danish biotechnology firm Novonesis A/S dropped 6.2% as it narrowed its organic revenue forecast for the full year.
European stocks are inching toward a record high on optimism that the Federal Reserve will resume interest-rate cuts. Regional equities have also proved resilient in the past two days as US technology stocks slid.
Investors are now awaiting remarks from Fed Chair Jerome Powell at the symposium in Wyoming on Friday. Focus is also on readings of the purchasing managers’ index from across the euro zone for clues on the economic growth outlook.
Geoff Yu, FX and macro strategist for EMEA at BNY Mellon, said investors are “unlikely to shift gears, as a defensive posture is needed ahead of Powell’s Jackson Hole speech.”
“Balancing inflation and growth risks has become difficult, precluding strong easing in financial conditions by the Fed and its peers,” he said.
Among other movers, WH Smith Plc plunged 30% as its financial review identified overstatement of around £30 million ($40 million) of expected headline trading profit in North America.
Source: Bloomberg
