European Shares Dip Amid Anticipation of Powell's Testimony

European shares fell on Tuesday, with the pan-European STOXX 600 index dropping 0.3%. This decline comes as investors anticipate crucial testimony from U.S. Federal Reserve Chair Jerome Powell. Key stocks including Indivior Plc, BP, and Dassault Systemes also faced notable declines due to various internal challenges.

European shares experienced a downturn on Tuesday, just hours before U.S. Federal Reserve Chair Jerome Powell was set to testify before a congressional panel. Indivior Plc took a significant hit, sliding to a near three-year low after revising its profit forecast downward.

The pan-European STOXX 600 index saw a 0.3% drop by 0707 GMT, driven primarily by losses in energy shares as oil prices dipped. Conversely, miners emerged as the top gainers, with a 0.5% rise fuelled by a slight uptick in copper prices. Investors are focused on Powell's scheduled semi-annual monetary policy testimony before Congress at 10 a.m. ET (1400 GMT).

European Central Bank board member Piero Cipollone's comments later in the day are also expected to provide clues on the ECB's interest rate trajectory. Dassault Systemes fell 3.7% after the French software giant adjusted its full-year earnings target downwards, attributing the move to cautious spending by its customers and delays in contract signings. BP similarly dropped 3.3%, citing lower refining margins and weak oil trading as factors likely to dent its second-quarter earnings. Indivior was the biggest loser, plummeting 27.7% after announcing it would halt sales of its schizophrenia drug Perseris and cut approximately 130 jobs.