Stocks in Europe drift lower ahead of Powell’s speech; Rolls-Royce collapses


A ground crew member passes a Rolls-Royce Holdings engine over the wing of a passenger plane at Tegel Airport, operated by Flughafen Berlin Brandenburg, in Berlin, Germany, July 7, 2020.

Krisztian Bocsi / Bloomberg Actualités

European stocks edged down on Thursday as markets were on suspense for comments from the head of the US Federal Reserve on the central bank’s inflation strategy.
Up 33% from its March lows, the Stoxx Europe 600 SXXP,
slipped 0.2%.

Futures sur le Dow Jones Industrial Average YM00,
fell 97 points.
The market awaits the 9:10 a.m. speech east by Federal Reserve Chairman Jerome Powell in which he is expected to suggest the central bank will adopt a new framework to allow inflation to get hotter than target current after a target period.

There is also data on jobless claims in the United States and more data on the second quarter gross domestic product.
Stocks in Motion, aircraft engine maker Rolls-Royce RR,
lost 8% after reporting a loss of £ 5.4bn before tax. It is looking at “a range of options” to strengthen its balance sheet, as well as potential divestments to raise at least £ 2 billion, including ITP Aero and other assets. CFO Stephen Daintith is stepping down to take on the same role at fast-growing supermarket distributor Ocado Group OCDO,

“Given the magnitude of the cash flow exodus, additional funds will likely be required. This means that dilutive increases in shares cannot be ruled out, ”said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown.
WPP WPP Advertising Group,
+ 4,74%
rallied 5% as he said he was on track to meet annual targets and paid an interim dividend.
OneSavings Bank OSB,
+ 16,80%
jumped 16%, as the specialist mortgage lender said its underlying pre-tax profit fell 14% and application volumes currently approach 60% of pre-COVID-19 foreclosure levels on criteria of tighter loan and higher prices.


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