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Frankfurt - European shares fell for the first time in four days as investors assessed recent gains before Federal Reserve Chair Janet Yellen’s Friday address in Jackson Hole, Wyoming.
The Stoxx Europe 600 Index slipped 0.8% to 342.3 at 09:18, with all industry groups declining. Banks led shares higher yesterday, taking the equity gauge’s three-day advance to the most in two weeks, as confidence tentatively returned amid the calmest market in more than a year.
A gauge of volatility for European equities is near its low for the year.
Investors are seeking clues on the trajectory of US interest rates, with Yellen’s upcoming speech expected to provide some clarity after recent hawkish comments from Fed officials. Fed funds futures indicate a 54% chance of a US interest-rate hike this year, up from 36% at the start of August.
The rally that lifted the Stoxx 600 as much as 12% since the Brexit vote stumbled last week on growing concerns over the European Central Bank’s ability to spur growth amid political turmoil and a banking crisis in Italy. A Bank of America report showed investors withdrew money from the region’s equity funds for a record 28 straight weeks.
Still, economic data have been beating forecasts, showing resilience after the UK decided to leave the EU. Eurozone figures for the services and manufacturing industries had the best reading in seven months on Tuesday, and Wednesday reports showed trade helped drive economic growth in Germany.
Glencore and Anglo American led a gauge of miners to the worst performance of the 19 industry groups on the Stoxx 600 today. Total SA dragged energy producers lower as oil held near its lowest close in a week.
Among stocks moving on corporate news:
Playtech rose 3.6% after the gambling-software provider reported an increase in first-half revenue and announced a special dividend.
Jimmy Choo jumped 6.2% after the maker of luxury shoes
posted higher first-half revenue and earnings and said it remains optimistic on this year’s prospects.
Seadrill climbed 2% after the offshore drilling company
reported better-than-forecast second-quarter profit as it cut costs.
CRH rose 3.7% after
posting higher-than-expected first-half sales and profit.
