(Reuters) – European shares dipped in early trading on Wednesday ahead of U.S. Federal Reserve Chair Jerome Powell’s two-day testimony where investors will closely watch for signs of an interest-rate cut later this month.
Powell is scheduled to give his semi-annual monetary policy testimony to Congress at 1400 GMT, and investors see a worrying lack of inflation globally as one reason for Powell to sound suitably dovish.
The pan-European shares index <.STOXX> fell 0.2% and was on course to extend losses to a fourth day, with Spain’s IBEX <.IBEX> underperforming with a 0.4% loss.
Stocks with exposure to Mexico led losses in Madrid with BBVA <BBVA.MC>, Iberdrola <IBE.MC> and Telefonica <VIVT4.SA> down between 0.6% and 0.8%, after a shock resignation of Mexican Finance Minister Carlos Urzua on Tuesday rattled Mexican markets.
(Reporting by Susan Mathew in Bengaluru; Editing by Arun Koyyur)