World Politics

European Stocks Close Lower Ahead of Fed Summit

Eric Piedmont | AFP | Getty Images
  • The Fed's Jackson Hole symposium kicks off Thursday. Markets will be watching Friday's closing remarks from Chairman Jerome Powell.
  • European Central Bank Chief Economist Philip Lane said on Wednesday that economic impact from the spread of the delta Covid-19 variant is likely to be limited across the euro zone.
  • German consumer morale dropped off heading into September. GfK's consumer sentiment index fell to -1.2 points from a revised -0.4 points in August.

LONDON — European shares closed lower on Thursday, echoing global sentiment as U.S. Federal Reserve policymakers gather for a closely watched monetary policy summit.

The pan-European Stoxx 600 provisionally ended the session down by 0.3%, with basic resources shedding 1.5% to lead losses while media stocks added 0.5%.

Shares in Asia-Pacific also retreated on Thursday, with Chinese stocks leading losses, while South Korea's central bank raised interest rates for the first time in nearly three years.

Stateside, U.S. stocks were lower as traders awaited more details on the Fed's plan to pull back on monetary stimulus.

The Fed's Jackson Hole symposium kicks off Thursday. Markets will be watching Friday's closing remarks from Chairman Jerome Powell.

Back in Europe, European Central Bank Chief Economist Philip Lane said on Wednesday that economic impact from the spread of the delta Covid-19 variant is likely to be limited across the euro zone, which remains on course for a robust recovery through 2022.

In corporate news, Deutsche Bank's asset management arm DWS Group is under investigation by U.S. regulators over allegations that it misrepresented its sustainable investing criteria, the Wall Street Journal reported Wednesday. Deutsche Bank shares slid 2.3% by mid-morning trade on Thursday.

On the data front, German consumer morale dropped off heading into September. GfK's consumer sentiment index fell to -1.2 points from a revised -0.4 points in August, and fell short of a -0.7 Reuters forecast.

French business morale was roughly stable in August, with the country's composite business confidence index coming in at 110 versus 113 in July, according to its official statistics agency.

In terms of individual share price movement, French media conglomerate Vivendi climbed 2.6% after Universal Music projected strong revenue growth and dividend payouts after its public listing.

At the bottom of the index, Hungarian budget airline Wizz Air sank 3.8%.

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— CNBC's Ryan Browne contributed to this report.

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