Europe open: Shares flat as Kabul bombings, Fed hawks deter investors
European stocks were flat on Friday morning despite weaker US and Asia markets after the Kabul suicide bombings.
Investors were also awaiting US Federal Reserve chair Jerome Powell’s speech for any sign on the timeline for slowing of its bond purchases programme.
The pan-European STOXX 600 index gained 0.03% in early deals. France’s CAC 40 index fell 0.3% after a survey showed French consumer confidence eased marginally in August.
US markets were also rattled by fresh calls for early tapering from some policymakers on Thursday.
"Investors succumbed to a bout of nervousness ahead of the Jackson Hole symposium after a week of several record highs across markets,” said Richard Hunter, head of markets at interactive investor.
"The jury remains out on whether Federal Reserve Chairman Powell will specifically address the taper timetable, especially ahead of next week’s non-farm payroll numbers.
"However, hawkish comments from other Fed members ahead of the event suggested that the time had come for a wind down of stimulus, which would be announced at the September meeting if not at the symposium.”
In equity news, shares in Just Eat Takeaway.com, which owns GrubHub, fell 2.3% after New York City Council approved legislation to license food-delivery apps and permanently cap commissions they can charge restaurants.
Aerospace and defence engineer Babcock rallied after an upgrade to ‘overweight’ from ‘equalweight’ at Barclays, which also lifted its price target to 424p from 315p.
The bank said that following the FY20 restatement, £2bn impairment, accounting policy changes and forthcoming disposal proceeds to mitigate balance sheet risk, Babcock looks set to generate meaningful cash flow from 2024, "returning as an attractive income play".