Europe close: Miners, oil drag benchmarks lower

European stocks wavered on Monday as investors eyed the US Federal Reserve’s Jackson Hole meeting later in the week in the hope that it might provide further clues on the timing of an interest rate hike.

The benchmark Stoxx Europe 600 index edged higher by 0.09% or 0.29 points to close at 340.43, Germany’s DAX was lost 0.47% and France’s CAC 40 was 0.24% weaker.

At the same time, oil prices retreated on news that Iraq – OPEC’s second-biggest oil producer – will boost its oil exports by 5%. A jump in the US oil-rig count, reported on 19 August, also weighed on prices. West Texas Intermediate was down 3.1% at $47.64 a barrel and Brent crude was 3.1% lower at $49.35.

Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor, said: “Equities are range bound on low volumes and little data, as investors once again turn their attention to the US Federal Reserve's Jackson Hole meeting this week. Global central bank policy remains the key driver of equity markets, with the Federal Reserve the largest potential catalyst for market momentum and direction.

“Stanley Fischer's hawkish comments over the weekend have nudged the dollar higher and highlighted (yet again) the differences in opinion and potential policy divide between Federal Reserve members. This makes Janet Yellen's speech on Friday even more significant as a potential signal of whether the Fed might move as soon as its upcoming September meeting.”

Federal Reserve vice chairman Fischer said in a speech at the Aspen Institute in Colorado that the US economy was close to meeting the bank’s targets for inflation and employment.

“Looking ahead, I expect GDP growth to pick up in coming quarters, as investment recovers from a surprisingly weak patch and the drag from past dollar appreciation diminishes,” he said.

Corporate news was thin on the ground, but Syngenta surged after the US-based Committee on Foreign Investment in the US cleared ChemChina’s takeover of the agrochemical company.

French outsourcer Teleperformance rose sharply after announcing the acquisition of translation services company LanguageLine Solutions in a $1.52bn deal.

Irish building materials group Kingspan also racked up healthy gains after reporting a jump in first-half profit and sales thanks to acquisitions and strong insulated panels sales.

In terms of sectors, basic resources were among the worst performers, with the corresponding sub-index down 1.8% as the stronger dollar weighed.