(MENAFN– ecpulse)
European shares dipped in early trade on Wednesday, pausing after a sharp two-day rally, with a slew of economic releases due and as investors await Fed’s Jackson Hole meeting. Also, Focus continues to be on the Geopolitical developments in Ukraine, Gaza and Iraq.
- Euro Stoxx fell 0.10 percent to trade at 311.64
- STX Europe 50 declined 0.1 percent to trade at 2,975.51
Geopolitical Tension
Risk sentiment is still seen fragile as fierce fighting continued between Ukrainian government forces and pro-Russian separatist rebels in Ukraine`s eastern city of Luhansk and Donetsk.
In the Middle East, a truce between Israel and Palestinian militants in Gaza has ended as militants in Gaza launched rockets at Israel on Tuesday, and Israel responded with airstrikes.
BoE July Minutes Eyed
Equity markets have been boosted in recent days on expectations that interest rates are likely to remain low until well into next year.
In the UK, the latest Bank of England minutes were eagerly anticipated with expectations fairly high that we might have seen some dissent in the voting patterns.
Economists had speculated that the central bank could be ready to raise its benchmark interest rate - even as early as this year.
However, weaker-than-expected inflation data on Tuesday and dovish words by Governor Mark Carney have helped to curb those expectations.
- British FTSE 100 fell 0.20% to trade at 6,765.74
- Germany’s DAX lost 0.20% to trade at 9,314.55
- French CAC 40 edged 0.23% lower to 4,244.74
Fed Minutes, Jackson Meeting on Tap
While keeping an eye on mounting geopolitical tensions, investors were also awaiting minutes of the Federal Reserve`s July meeting for clues about the U.S. central bank`s monetary policy outlook.
The markets will also be watching closely the minutes as well as Fed Chair Janet Yellen`s speech on Friday at a gathering of central bankers in Jackson Hole for clues as to how soon the Fed will begin to consider raising interest rates.
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