European stock markets staged broad-based losses on Wednesday, tracking both U.S. and Asian stocks lower, after Federal Reserve officials said a reduction in asset purchases is likely later this year. Investors were also waiting for the Bank of England's quarterly inflation report and whether the central bank will reveal a framework for forward guidance. The Stoxx Europe 600 index XX:SXXP -0.51% lost 0.5% to 301.99, after snapping a six-day winning streak on Tuesday. Shares of TUI Travel PLC UK:TT -4.98% slid 5.1% in London after the travel agency reported an operating loss for the nine-month period to June 30. Shares of Randgold Resources Ltd. UK:RRS -4.13% GOLD -6.36% shaved off 3.2% after the gold miner reported second-quarter profit below expectations. Other miners were also lower as most metals prices declined. Heavyweight Rio Tinto PLC UK:RIO -1.82% AU:RIO -2.10% RIO -1.65% dropped 1.8% and BHP Billiton PLC UK:BLT -0.91% BHP -0.41% AU:BHP -2.02% fell 0.8%. On a more upbeat note, shares of Old Mutual PLC UK:OML +4.10% jumped 4.3% after the insurance firm reported a rise in first-half pretax profit and funds under management. The broader European stock markets mirrored losses seen in the U.S. the prior day and overnight in Asia on concerns U.S. monetary policy will soon become less accommodative. Charles Evans, President of the Chicago Federal Reserve said late Tuesday the economy should improve enough in the second half of the year to allow the central bank to scale back its $85-billion-a-month asset purchases. The comments came after Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, told Market News International that the tapering process could begin at any of the three remaining FOMC meetings this year. The U.K. central bank was also in focus in Wednesday's trade ahead of the Bank of England's quarterly inflation report. Apart from laying out the bank's inflation projections, Governor Mark Carney is also expected to outline if and how the central bank will deploy forward guidance on monetary policy. "We expect the likely announcement of a more aggressive approach to monetary policy — either via a time- or state-contingent commitment — to anchor short GBP rates and to weigh on sterling," analysts at Danske Bank said in a note. The FTSE 100 index UK:UKX -0.36% traded 0.4% lower at 6,576.70 ahead of the report. Germany's DAX 30 index DX:DAX -0.57% dropped 0.6% to 8,253.43, while France's CAC 40 index FR:PX1 -0.40% lost 0.4% to 4,018.06. Source: Marketwatch
