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European stocks opened lower on Tuesday, while expectations are that the US Federal Reserve will soon begin to cut rates after Friday’s Jackson Hole symposium. Swissquote’s Ipek Ozkardeskaya noted allegations of mortgage fraud but said this was ‘unlikely to be the real reason Cook is in the firing line’. ‘She has been outspoken about the inflationary impact of tariffs, warning last June that [they] would...[force] policymakers to keep interest rates higher for longer,’ Ozkardeskaya noted, continuing: ‘Cook said she will not step down, but this latest episode of American political drama reignites concerns about the independence of the Fed, and by extension undermines confidence in the US as the global benchmark for transparent and rules-based capital markets.’ The FTSE 100 index opened down 62.77 points, 0.7%, at 9,258.63, and the FTSE 250 was down 138.22 points, 0.6%, at 21,939.01, but the AIM All-Share was up 1.17 points, 0.2%, at 766.20. The Cboe UK 100 was down 0.7% at 928.89, the Cboe UK 250 was down 0.6% at 19,288.27, and the Cboe Small Companies was up 0.1% at 17,288.61. On the FTSE 100, British American Tobacco lost 1.7%. The cigarette and nicotine product maker announced that Chief Financial Officer Soraya Benchikh has resigned with immediate effect after a short stint. Benchikh, who will stay to support the transition until December 31, became the CFO in May 2024. Javed Iqbal will again act as an interim CFO until a permanent successor is appointed. In smaller caps, Old Mutual climbed 6.8%. The financial services firm guided for basic earnings per share of between 84.1 rand cents and 108.2 cents for the six months that ended June 30, down between 10% and 30% from 120.2 cents a year earlier. Headline EPS is likely to have fallen by 17% to 37%. But adjusted HEPS is expected to rise by between 21% and 41%. Old Mutual said this growth was further bolstered by increased shareholder investment returns driven by the South African and Malawian equity markets, which performed ‘considerably’ above expectations. ITM Power gained 3.5%. The green hydrogen electrolyser maker announced a strategic partnership between its subsidiary Hydropulse and renewable energy developer ABO Energy. The two companies will develop decentralised hydrogen production units on or near end-user sites, so industrial customers can access long-term reliable hydrogen supplies more easily. In European equities on Tuesday, the CAC 40 in Paris was down 2.2%, while the DAX 40 in Frankfurt was down 0.9%. The pound was quoted at $1.3442 early on Tuesday in London, lower compared to $1.3539 at the London equities close on Friday. The euro stood at $1.1612, lower against $1.1726. Against the yen, the dollar was trading higher at JP¥147.73 compared to JP¥146.61. In Asia on Tuesday, the Nikkei 225 index in Tokyo was down 1.0%. In China, the Shanghai Composite was down 0.4%, while the Hang Seng index in Hong Kong was down 1.0%. The S&P/ASX 200 in Sydney closed down 0.4%. In the US on Monday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.8%, the S&P 500 down 0.4% and the Nasdaq Composite down 0.2%. The yield on the US 10-year Treasury was quoted at 4.30%, widening from 4.26% late Friday. The yield on the US 30-year Treasury was quoted at 4.94%, widening from 4.87%. XS analyst Linh Tran noted ‘expectations that the Federal Reserve will soon begin a rate-cutting cycle’. ‘The recent Jackson Hole symposium played an important role, as Fed Chair Jerome Powell acknowledged rising risks to the labour market while leaving the door open to policy easing should economic data continue to weaken,’ Tran explained. Brent oil was quoted at $68.28 a barrel early in London on Tuesday, up from $67.59 late Friday. Gold was quoted lower at $3,371.02 an ounce against $3,375.22. Still to come on Tuesday’s economic calendar, there are several US data releases plus comments from the Bank of England Monetary Policy Committee’s Catherine Mann. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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