Europe midday: Stocks mixed as investors wait on ECB minutes, Yellen speech

Stocks were mixed as investors awaited the European central Bank’s latest minutes and Federal Reserve chair Janet Yellen’s testimony before Congress.

At midday, the benchmark Stoxx Europe 600 index rose 0.14%, Germany's DAX fell 0.21% and France’s CAC 40 was up 0.13%.

“We may get some insight from Chair Janet Yellen today on how the central bank will deal with the anticipated inflation and whether she believes a faster pace of tightening will be required next year. The markets may have priced in December but as of yet, only one hike is priced in for next year which strikes me as being too few under the circumstances, even not accounting for Trump’s spending plans,” said senior market analyst at Oanda Craig Erlam.

Oil prices rose, with Brent crude up 1.2% to $47.22 per barrel and West Texas Intermediate rising 1.1% to $46.09.

On the data front, inflation in the euro area was 0.5% on the year in October, up from 0.4% the month before, the highest reading in 28 months, according to Eurostat figures. Consumer prices were up 0.2% last month in the 19 countries that share the euro.

Connor Campbell, analyst at Spreadex, said: “The steady increase in Eurozone inflation means Mario Draghi and co. might think twice about reducing their own rates.”

He added that the data also had a positive effect on the euro. “Not only did it take 0.2% off of sterling, its gains against the dollar were, at half a percent, higher than the 0.3% rise managed by the pound.”

In corporate news, Italian investment bank Mediobanca edged lower despite its plan to raise profits by 43% by 2019 partly through around €1bn in acquisitions.

Food retail group Ahold Delhaize was in the red as its third-quarter results missed expectations, while Royal Mail fell after it said half-year revenue edged up thanks to its European business but the EU referendum resulted in a reduction in UK marketing activity.

Building materials group CRH gained after earlier losses as it reported a 6% rise in cumulative sales in the first nine months of the year and said it continues to expect earnings for the year to be in excess of €3bn.

Zurich Insurance slipped following earlier advances as it said it was aiming to maintain an annual dividend of CHF17 and cut its costs further.

Julius Baer edged higher after reporting that assets under management in the first ten months of the year rose 9%.

Johnson Matthey lost its earlier gains as it posted a 5% rise in first-half underlying pre-tax profit, while Rio Tinto gained after terminating the contracts of two directors following an internal review into a controversial payment to a consultant concerning the Simando iron ore project in Guinea.

The ECB minutes are due at 1230 GMT, while Yellen's testimony is at 1500 GMT.