BLBG: Europe Stocks Little Changed as Investors Weigh Fed Intentions
European stocks were little changed as investors speculated on the timing of a Federal Reserve interest rate increase amid turmoil in Chinese markets.
The Stoxx Europe 600 Index slid 0.1 percent to 362.98 at 8:11 a.m. in London. After a rollercoaster five days, European stocks last week ended up with their first weekly gain since China devalued its currency. The equity measure is still heading for its worst month in four years.
The value of global shares has plummeted by more than $5 trillion in August as concern that China’s economy may be weaker than previously thought exacerbated investor worry about whether global growth can withstand higher U.S. interest rates.
U.S. officials are weighing the timing of their first rate increase since 2006. Bets on a September Fed liftoff climbed after Vice Chairman Stanley Fischer said there is “good reason” to believe inflation will accelerate.
In China, shares extended the biggest two-month tumble since 2008 amid growing concern that government intervention to prop up the market will fail.
Investors will also watch data on euro-area inflation. Prices increased 0.1 percent in August from a year earlier, according to economist forecasts.
Among stocks moving on corporate news, Eni SpA advanced 3.3 percent after saying it discovered a “super giant” natural gas field offshore Egypt.
