European markets lower as investors digest Powell's comments on cutting rates; Ocado jumps 10.4%

LONDON — European stocks were lower Tuesday as investors assess the economic and political outlook in the region and beyond.

The pan-European Stoxx 600 was down 0.51% by 12:37 p.m. London time, as all sectors and major bourses traded in the red. Mining stocks led losses, shedding 1.88%, while insurance also lost 1.48%.

Shares of German fashion house Hugo Boss plunged more than 10% after the company cut its full-year sales outlook, amid "persistent macroeconomic and geopolitical challenges." Burberry share also traded 3.3% lower, a day after issuing a profit warning on weak luxury demand.

Sweden's Swedbank fell 1.25% after it reported a fall in second quarter net profits. Meanwhile, Ocado jumped as much as 18.5%, before paring gains slightly, after the British online grocer reported a lower first half loss and raised its full-year guidance.

Global markets are digesting dovish comments from U.S. Federal Reserve Chair Jerome Powell in which he said the central bank will not wait until inflation hits 2% to cut interest rates, as the Fed's policy works with "long and variable lags."  

So, "if you wait until inflation gets all the way down to 2%, you've probably waited too long," he said Monday.

His comments, combined with expectations that the failed assassination attempt on Republican presidential candidate Donald Trump will lead to big gains for the party and friendlier fiscal policies from a Trump administration, sent Wall Street higher Monday.

Asia-Pacific markets were mixed overnight as traders reacted to Powell's comments. U.S. stock futures were slightly higher on Monday after the Dow Jones Industrial Average closed at a record high.