A decline in shares of car companies dragged down European stocks early Tuesday as investors waited for comments from global central bankers.
Continue Reading Below
The Stoxx Europe 600 was off 0.3% in the early minutes of trading, weighed down by a 1.5% drop in the autos and parts sector. General Motors Co. said Monday it expects industry vehicle sales to fall short of its original forecast for the year, with finance chief Chuck Stevens noting slowing U.S. sales in the first several months of the year.
Italian banks edged down 0.1% following a day of solid gains, while Europe's resources sector advanced, supported by a stabilization in iron-ore prices and gains across commodity markets including crude oil futures, gold and copper prices.
Government bonds and currencies were broadly steady as investors waited for new comments from central bank officials later Tuesday, including remarks from European Central Bank President Mario Draghi and Federal Reserve Chairwoman
Ms. Yellen is set to speak in London on global economic issues as the Fed considers the timing of future interest-rate rises and the start of its plan to wind down its asset holdings.
During a slow news week as the second quarter comes to an end, "what matters most...is Fedspeak," said Kathy Lien, head of forex strategy at BK Asset Management.
Continue Reading Below
Investors want to know whether Ms. Yellen believes recent softness in some U.S. economic data is transitory. Policy makers' latest forecasts suggest as much, continuing to project three interest-rate increases both this year and next.
Fed-fund futures tracked by CME Group suggest investors currently see just a 13% chance of a rate rise by the end of the September meeting. "Should the remaining FOMC members start sounding notably more hawkish or the U.S. data generally surprise on the upside, the market can quickly change its mind," strategists at Commerzbank wrote in a note.
Earlier, stocks mostly extended modest gains in Asia-Pacific trading following a quiet session on Wall Street.
Korea's Kospi edged up 0.1%, putting it on pace for another record close, while Japan's Nikkei added 0.4% to hit its best level in a week following an earlier decline in the yen. The dollar hit its best level against the Japanese currency in a month, briefly trading above Yen112 before retreating.
The WSJ Dollar Index, which tracks the dollar against a basket of 16 currencies, was last down 0.1%.
Australian equities were 0.1% lower as gains among major banks and miners were offset by declines elsewhere, particularly in utilities and consumer shares.
Kenan Machado contributed to this article.
Write to Riva Gold at firstname.lastname@example.org and Ese Erheriene at email@example.com
(END) Dow Jones Newswires
June 27, 2017 03:47 ET (07:47 GMT)