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European Shares Slip After Fed President Suggests Taper Next Month
By: MT Newswires
European stocks dropped after Federal Reserve Bank of St. Louis President James Bullard said a tapering of bond purchases could come next month.
He said in an interview with Bloomberg economic reports over the next month may lead the Federal Open Market Committee to trim its monthly purchases of Treasuries or mortgage bonds when it next meets on Oct. 29-30.
Around the region, a European Commission report showed an index of household sentiment in the euro area climbed to minus 14.9 in September from minus 15.6 in August. The median estimate of economists surveyed by Bloomberg had called for a reading of minus 14.5.
Investors also awaited Sunday's federal elections in Germany. Polls show that no group is likely to win a majority in the elections, meaning there will have to be a coalition government.
In ADR news, Royal Bank of Scotland ( RBS ) sold a 630 million-pound ($1 billion) stake in the U.K.'s biggest car insurer.
The FTSE-100 was last down 0.44% at 6,596.43, the DAX down 0.21% at 8,675.73 and the CAC-40 down 0.06% at 4,203.66.