The Stoxx 600 Index edged 0.4% lower as of 8:12 a.m. in London, with tech and consumer products stocks dropping the most. Societe Generale SA declined after the bank’s new strategic plan disappointed analysts, while Nordic Semiconductor slumped after the chipmaker reduced quarterly revenue and margin forecasts.
The main regional benchmark dips after recording the biggest weekly advance in two months. Beyond the nervousness about the Fed this week, gains are also being hit by renewed fears about the health of the Chinese property sector, which dented Chinese stocks in Hong Kong. April LaRusse, head of investment specialists at Insight Investment said “the Fed or any other central bank this week will leave as much wiggle room as possible in terms of forward guidance.”
“In terms of cuts next year, we’re thinking why rush unless economy is actually contracting there would be no reason to start cutting until the second half of next year,” she added, in a Bloomberg TV interview. She expects growth “to stagnate and then maybe you get the odd quarter of contraction but it’s not going to be a 2008-sort of slowdown or anything like that.”
Meanwhile, European Central Bank’s Governing Council member Martins Kazaks says betting that the bank cutting interest rates in the first half of next year would be a mistake.M&A Watch Europe: Bouygues, Colas, Thales, Mondi, Schott PharmaYou want more news on this market? Click here for a curated First Word channel of actionable news from Bloomberg and select sources. It can be customized to your preferences by clicking into Actions on the toolbar or hitting the HELP key for assistance.