European stocks dropped for a second day as Bank of England set a 7% unemployment threshold for raising interest rates from a record low and Federal Reserve officials signaled they may pare bond purchases.
Natixis SA fell the most in a month after posting a 29% decline in second-quarter profit.
Rexel SA (RXL) lost 4.4% after its largest shareholder sold a 10% stake.
Randgold Resources Ltd. led mining stocks lower after reporting a slump in sales and profit.
ING Groep NV (INGA) surged to a two-year high after quarterly pretax profit rose.
The Stoxx Europe 600 Index declined 0.4%. The benchmark has
rallied 9.7% since June 24 as central banks in Europe and the U.S.
pledged to keep interest rates low.
“Monetary policy was a stability factor for a long period
of time, but the tapering issue has meant that now it will be a
volatility factor for the coming quarters,” experts said.
The Bank of England for the first time linked the outlook for its
benchmark interest rate to unemployment and inflation and will keep its
current policy “at least” until the jobless rate falls to 7%. The BOE
sees it staying above 7% at least until the third quarter of 2016.
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