Europe open: Shares lower despite dovish Powell; Hugo Boss tanks

European shares opened lower on Tuesday as investors digested dovish remarks from US Federal Reserve chair Jerome Powell on interest rates, while shares in Hugo Boss fell sharply as the German fashion house cut annual sales guidance.

The pan-European Stoxx 600 index was down 0.43% to 516.50 in early deals. US shares were boosted overnight when Powell said the Fed would not wait until inflation hits 2% to cut interest rates.

“If you wait until inflation gets all the way down to 2%, you’ve probably waited too long,” he said Monday.

In equity news, shares in Hugo Boss plunged as the company cut the sales outlook, citing “persistent macroeconomic and geopolitical challenges”.

UK online grocer and technology group Ocado surged more than 15% after reporting a lower first half loss and raising full-year guidance.

Reporting by Frank Prenesti for Sharecast.com