European Stocks Pare Gains as They Await Fed's Next Move

LONDON ( The Deal) -- European stock indices pared gains accrued earlier this week as investors focused on the Federal Reserve's next move and as German price data pointed to subdued growth.

Clues on the rate outlook may come from the Federal Open Market Committee's minutes of its July 29-30 meeting, due out Wednesday, and from global monetary whizzes including Fed boss Janet Yellen and European Central Bank counterpart Mario Draghi, who will assemble in Jackson Hole, Wyo., on Thursday for an annual symposium.

Meanwhile, the German government's statistics agency said July producer prices fell 0.1% month-on-month, defying expectations for a 0.1% increase. Prices were down 0.8% year on year, after falling at an annual rate of 0.7% the month before.

In the U.K., Bank of England minutes showed that two out of nine policymakers voted to lift rates at its last meeting, though inflation news has since tempered expectations that rates are poised to rise from their historic low 0.5%, where they've sat for more than five years.

Watch the video below for more on where the Bank of England stands on raising interest rates:

 


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In London, the FTSE 100 was down 0.34% at 6,755.94. In Frankfurt, the DAX slid 0.54% to 9,284.13. The CAC in Paris slipped 0.48% to 4,234.07.

In London, infrastructure services company Balfour Beatty fell almost 7% after the company rejected a sweetened all-share offer from peer Carillion that values the company at 2.09 billion pounds ($3.46 billion) and refused to ask the Takeover Panel to extend a Thursday deadline for its suitor to come up with a firm offer or formally back down and be barred from bidding for six months under most circumstances.

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