FTSE MIB down 0.13%; DAX down 0.12%; CAC 40 up 0.18% (Il Sole 24 Ore Radiocor) - London, 26 Aug - European shares closed mostly lower as investors assessed comments from Federal Reserve chair Jerome Powell at the Jackson Hole summit over the weekend while looking ahead to new eurozone inflation data later this week.

Powell signalled in no uncertain terms, 'the time is right' for an interest rate cut.

While the Fed chief did not say when or by how much interest rates would come down, a cut in September is being priced in as a dead certainty. The question investors are now asking is whether the cut will be 25 basis points or a heftier 50.

EU inflation data is due to be released on Friday and will be closely watched for clues as to whether to European Central Bank will continue to cut rates next month.

Trading was quiet, with London closed for a bank holiday.

On the data front, the latest survey from German think tank Ifo showed the business climate in Germany decreased to 86.6 from 87.0 in July, but nonetheless came in slightly above economist expectations of 86.0.

"The German economy is increasingly falling into crisis," said Clemens Fuest, president of Ifo.

The Frankfurt DAX shed 0.12% at 18,612.83 points, the Paris CAC 40 gained 0.18% at 7,590.37 points, while in Milan the FTSE MIB fell 0.13% at 33,604.80 points, and in Madrid the IBEX 35 closed 0.07% lower at 11,270.60 points.

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(RADIOCOR) 26-08-24 18:04:20 (0424) 5 NNNN