European shares were still weaker at midday on Thursday, as investors taking a cautious stance ahead of a key two-day meeting of US Federal Reserve policymakers and a German consumer survey showed sentiment weakening.
The pan-regional Stoxx 600 index was down 0.39% with all major Continental bourses lower. Asia-Pacific shares retreated, with Chinese stocks leading losses. US markets closed higher overnight.
Germany’s DAX was down 0.61% after a survey revealed sentiment among consumers darkened heading into September as accelerating inflation and rising Covid-19 cases made them more hesitant to buy.
The GfK institute said its consumer sentiment index, based on a survey of around 2,000 Germans, dropped to -1.2 points for September, from a revised -0.4 points a month earlier and compared with a forecast reading of -0.7.
“Prices have been rising rapidly since the middle of this year. This has a dampening effect on the consumer mood,” GfK consumer expert Rolf Buerkl said in a statement.
Across the pond, the Fed’s Jackson Hole symposium starts on Thursday with markets focusing on Friday’s closing remarks from Chairman Jerome Powell for indications on when the central bank may begin tapering its stimulus program.
Investors are also eyeing US second quarter GDP.
“A tepid opening to trading has seen investors choosing to react to further weakness in Asian markets, as opposed to the further strength of Wall Street,” said interactive investor head of markets Richard Hunter.
In equity news, shares in building materials supplier CRH rose 2% as the company lifted annual guidance after a 25% jump in interim core earnings.
Polymetal International fell 2.69% despite reporting an improved interim profit.
Deutsche Bank’s asset management arm DWS Group fell on a report US authorities were investigating the company over sustainability claims. Deutsche Bank’s shares were down 1.5%.
France’s Vivendi rose 3.73% after its unit Universal Music Group said it expects further revenue growth this year and it aims to pay out dividends once it lists in Amsterdam.
French conglomerate Bouygues gained as it raised its full-year earnings outlook.
