A ground crew member passes a Rolls-Royce Holdings engine on the wing of a passenger plane at Tegel Airport, operated by Berlin Brandenburg Airport, in Berlin, Germany, on July 7, 2020.
Krisztian Bocsi / Bloomberg News
European equities fell lower on Thursday, with markets keen on the US Federal Reserve’s remarks on the central bank’s inflation strategy.
Up 33% from March, the Stoxx Europe 600 SXXP,
glide 0.2%.
Futures on the Dow Jones Industrial Average YM00,
fell 97 points.
The market is waiting for the 9:10 am Eastern address of Federal Reserve Chairman Jerome Powell, in which he is expected that the central bank will adopt a new framework to make inflation hotter than the current target after a period of failure of that target.
There are also data on U.S. unemployment and more data on the second-quarter gross domestic product.
Of shares under way, struggling manufacturer of aircraft engines Rolls-Royce RR,
lost 8% after reporting £ 5.4 billion loss before tax. It is considering “a variety of options” to strengthen its balance sheet, in addition to potential dispositions to raise at least £ 2 billion, including ITP Aero and other assets. Chief Financial Officer Stephen Daintith is stepping down to take on the same role at fast-growing supermarket distributor Ocado Group OCDO,
“Given the size of the cash flow outflow, further funding is likely to be needed as well. That means capital adequacy cannot be ruled out,” said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown.
Ad Group WPP WPP,
raised 5%, as it said it was on track to achieve full-year targets and pay an interim dividend.
OneSavings Bank OSB,
jumped 16%, as the specialist mortgage lender said its underlying pre-tax profit fell 14% ahead and said application volumes currently reach 60% of pre-COVID-19 lockdown levels on tighter lending criteria and higher prices.
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