Europe: Shares edge down with all eyes on the Fed

[LONDON] Bourses opened slightly lower across Europe on Tuesday as traders awaited clues from the Federal Reserve on its plans to move towards unwinding its US$4.2 trillion portfolio of Treasuries and mortgage-backed securities.

Despite Wall Street reaching new highs yet again, shares in Europe followed Asia's overnight caution with the pan-European STOXX index down 0.2 per cent.

Financials were some of the only stocks trading in positive territory, as monetary tightening typically benefits lenders.

The European banking index was up 0.2 per cent with HSBC at the top of the list with a 1 per cent rise.

British online grocer Ocado topped the index losers' list with a 5.3 per cent fall after the firm reported third-quarter results, saying short-term costs could increase due to investment in a new distribution centre.

REUTERS