Stock markets retreat awaiting Fed boss Powell

July 9: European and US stock markets retreated on Tuesday, with the biggest declines in share prices seen in Frankfurt following a profit-warning from German chemicals giant BASF.

Asian indices mostly closed down as investors awaited the start of testimony from US Federal Reserve head Jerome Powell.

Clues on the outlook for US interest rates are keenly awaited after the country's recent strong jobs report threw into doubt expectations for a deep cut in American borrowing costs later this month to help boost the economy.

"Equities are weaker and the dollar firmer as the prospect of the Fed not being as dovish as the market wants it to be takes the shine off things," said Neil Wilson, analyst for Markets.com.

Frankfurt was down a hefty 1.1 percent in afternoon trading, while London slid 0.3 percent and Paris shed 0.4 percent compared with the closing levels on Monday.

Wall Street opened lower, with the Dow dropping 0.5 percent in the first minute of trading.

The euro and pound dropped versus the dollar, while oil prices rose.

AFP/APP