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Hawkish Fed Outlook Damps European Bourses Midday

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European bourses tracked moderately lower midday Thursday as traders mulled the somewhat hawkish commentary that new Federal Reserve Chair Kevin Warsh delivered overnight, and prospects for a tighter US monetary policy in the seasons ahead.

Food and property stocks led broad, tempered losses on continental trading floors.

Investors also eyed Wall Street futures flashing green, and higher closes overnight on Asian exchanges.

In economic news, the Bank of England held its key policy interest rate steady at 3.75%, while the Swiss National Bank left its policy rate unchanged at 0%.

The pan-continental Stoxx Europe 600 Index was off 0.6% mid-session.

The Stoxx Europe 600 Technology Index was down 0.1%, and the Stoxx 600 Banks Index lost 0.4%.

The Stoxx Europe 600 Oil and Gas Index eased 0.5%, while the Stoxx 600 Europe Food and Beverage Index declined 1.1%.

The REITE, a European REIT index, fell 1.9%.

On the national market indexes, Germany's DAX was down 0.1%, and the FTSE 100 in London lost 1%. The CAC 40 in Paris was down 0.2%, and Spain's IBEX 35 eased 0.6%.

Yields on benchmark 10-year German bonds were higher, near 2.94%.

Front-month North Sea Brent crude-oil futures were down 1% at $78.72 a barrel.

The Euro Stoxx 50 volatility index was steady at 16.59, indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

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