By Ryan Vlastelica
Investors looking to comments from Federal Reserve
European stocks were little changed on Tuesday, with equities
lacking catalysts to push shares decisively higher in either
direction.
Investors are looking ahead to highly anticipated comments from
the U.S. Federal Reserve, which could provide insight into what
monetary policy will look like over the coming months.
Where are the major benchmarks trading?
The Stoxx Europe 600 Index rose less than 0.1% to 383.22, as it
dipped between positive and negative territory in early trading.
The index ended 0.6% higher on Monday, in a modest rebound from
recent losses, including a 1.2% drop over the course of last week,
which was its third straight weekly decline.
Germany's DAX rose 0.2% to 12,360. On Monday, the index rose 1%
in its biggest single-day percentage gain since July 26, after its
third straight down week, its longest such stretch since
February.
France's CAC 40 fell less than 0.1% to 5,377 while the U.K.'s
FTSE 100 was unchanged at 7,591.5.
The euro extended its recent advance against the dollar,
changing hands at $1.1521, compared with $1.1484 late Monday in New
York. The U.S. dollar index is down for a fifth straight session,
its longest such streak since the start of the year. Thus far this
year, however, the euro is down more than 4% against the
greenback.
What's driving the market?
Investors are turning their attention to upcoming news from the
Federal Reserve. The minutes from the central bank's latest meeting
will be released on Wednesday, and on Friday, Fed Chairman Jerome
Powell will give a speech at the Fed's annual summer retreat in
Jackson Hole.
Both the minutes and the speech will be scoured for any insight
(http://www.marketwatch.com/story/feds-powell-may-use-jackson-hole-speech-to-discuss-potential-trouble-ahead-2018-08-17)
into what the Fed sees as potential problem spots for the economy
as well as for any clues into the Fed's policy plans on interest
rates. In particular, market participants will be looking to hear
Powell's thoughts on trade policy and whether the currency crisis
in Turkey could spread to other emerging markets or regions.
Don't miss:Here's how Jackson Hole could impact the dollar,
bonds and emerging markets
(http://www.marketwatch.com/story/heres-how-the-jackson-hole-gathering-may-influence-the-dollar-bonds-and-emerging-markets-2018-08-20)
Separately, investors are continuing to monitor trade relations
between the U.S. and its major trading partners, with talks between
the U.S. and China set to resume on Wednesday. While market
participants are optimistic that progress could be made in the
talks -- potentially avoiding a potential trade war, which most
analysts said would be a massive headwind for global economic
growth -- few expect the issue to be resolved.
On Monday, President Donald Trump told Reuters that he has "no
time frame"
(http://www.marketwatch.com/story/trump-wary-of-perjury-trap-says-he-could-intervene-in-mueller-probe-2018-08-20)
for ending the trade dispute, and that he didn't "expect much" from
the talks. His administration is also moving forward with tariffs
(http://www.marketwatch.com/story/even-with-trade-talks-on-tap-us-moves-forward-on-new-tariffs-against-china-2018-08-20)
that cover $200 billion in Chinese goods, including some that are
to take effect on Thursday.
U.K.'s top diplomat was expected to deliver a speech in
Washington
(http://www.marketwatch.com/story/uk-to-seek-further-russia-sanctions-from-allies-including-us-2018-08-20)
on Tuesday calling for fresh sanctions against Russia, urging a
continued hard line, according to prepared remarks released by the
embassy.
What are market analysts saying?
"European markets have opened rather mixed this morning after
yesterday's positive session though it should also be acknowledged
they have underperformed in recent weeks, and are still close to
three month lows," wrote Michael Hewson, chief market analyst at
CMC Markets UK in a morning note.
What stocks are in focus?
BHP Billiton PLC (BLT.LN) fell 1.9% after it reported its
quarterly results
(http://www.marketwatch.com/story/bhp-posts-higher-profit-and-dividend-2018-08-21),
where earning were pressured by $5.2 billion in impairment
charges.
Bayer AG (BAYN.XE) rose 1.5%, extending a rally it posted in
Monday's session. The pharmaceutical giant is up more than 4.6%
thus far this week, a rally that follows massive losses last week,
after a litigation loss
(http://www.marketwatch.com/story/bayers-stock-plunges-after-monsanto-ruling-2018-08-13)
by Bayer-owned Monsanto in California over whether its herbicide
Round-up is carcinogenic.
Aggreko PLC (AGK.LN) gained 5.6% and was the top percentage
gainer among European stocks.
Polymetal International PLC (POLY.LN) reported earnings and
sales that rose from the prior year. It also boosted its dividend
by 21%
(http://www.marketwatch.com/story/polymetal-hikes-dividend-as-net-profit-rises-46-2018-08-21).
Shares rose 0.7%.
Persimmon PLC (PSN.LN) reported earnings that rose 13%, and it
set out plans for the return of surplus capital over the next three
years
(http://www.marketwatch.com/story/persimmon-profit-up-on-rising-sales-margins-2018-08-21).
The stock dipped 0.3%.
John Wood Group PLC (WG.LN) swung to a pretax loss in the first
half of the year, though revenue more than doubled
(http://www.marketwatch.com/story/wood-group-swings-to-pretax-loss-on-one-off-costs-2018-08-21).
Shares gained 4.2%.
On the downside, Indivior PLC (INDV.LN) fell 2.6% in early
trading.
(END) Dow Jones Newswires
August 21, 2018 04:09 ET (08:09 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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