Europe midday: Shares down as investors eye ECB minutes
European shares were lower at midday at the open on Monday after China cut more key interest rates and investors digested hawkish comments from a European Central Bank policymaker.
The pan-European STOXX 600 was down 0.77% with all major regional bourses lower.
Sentiment was dented when Bundesbank President Joachim Nagel told a German newspaper the European Central Bank must keep raising rates even if a recession in Germany is increasingly likely, as inflation would remain high into next year.
Investors will also be scanning the ECB's last policy meeting due this week.
China's central bank on Monday cut benchmark loan rates as it tried to boost sluggish economic activity. The one-year Loan Prime Rate, which serves as a benchmark for corporate loans, was lowered to 3.65% from 3.7%, the People's Bank of China (PBOC) said in a statement.
The five-year LPR, which is used to price mortgages, was cut to 4.3% from 4.45%. It is the second time in a week the PBOC has cut rates. The seven-day reverse repurchase rate -- a key rate at which it provides short-term liquidity to banks – was also reduced.
Traders are also eyeing the US Federal Reserve's plans for monetary policy tightening ahead of this week's Jackson Hole symposium, with a keynote address from the central bank's chair Jerome Powell on Friday.
In equity news, shares in budget airline Wizz Air fell as the company said chief financial officer Jourik Hooghe has decided to step down to pursue other opportunities.
Vodafone shares were up after the telecoms giant said it was planning to sell its Hungary business to 4iG and Corvinus, a Hungarian state holding company, for €1.8bn.
Reporting by Frank Prenesti at Sharecast.com