Europe close: Stocks end mostly lower ahead of Fed chair speech

27th Aug 2026 16:31

(Sharecast News) - European stocks ended mostly lower on Thursday despite Nvidia's blockbuster results giving the tech sector a boost, amid concerns about sticky US inflation and wariness ahead of a speech by new US Federal Reserve chair Kevin Warsh at the Jackson Hole Symposium.

The benchmark Stoxx 600 index ended down 0.7% at 651.85 and France's CAC 40 tumbled 1.7% to 8,319.87, but Germany's DAX closed up 0.3% at 26,367.24. The German market was boosted in part by a survey showing that consumer sentiment improved noticeably in August as income expectations recovered and households became slightly less inclined to save.

More broadly, Susannah Streeter, chief investment strategist at Wealth Club, said investors were focusing once again on worries about US inflation proving sticky, huge government debt piles and the prospect of interest rates lingering at elevated levels.

"The key central bankers' meeting at Jackson Hole is getting underway, and Fed chair Kevin Warsh's speech tomorrow will be closely watched for hints about the future path of interest rates," she said.

"While headline inflation has dipped back, it's not such a benign picture if you look at the Fed's preferred measure, the Personal Consumption Expenditures Price Index. It captures a broader range of prices and spending behaviour, and it's still running hot - headline PCE is at 3.7%, while core PCE came in at 3.3%, above forecasts. That leaves the Fed with a tricky balancing act, with inflation still well above its 2% target just as signs of a cooling economy and a weakening jobs market come to the fore."

In equity markets, Pernod Ricard slid as the French drinks maker reported a drop in annual sales, highlighting continued softness in the US and weak demand in China.

French civil engineering construction company Eiffage tumbled after its first-half adjusted operating income came in below estimates.

Prudential lost ground despite raising its share buyback programme after reporting strong first-half results, which showed adjusted operating pre-tax profit at the insurance and asset management company were up 10% at $1.52bn.