Europe open: Investors take profits ahead of more Fed speakers

Europe's main bourses began the session on the backfoot, as data disappointed and investors took profits ahead of the weekend and another barrage of US central bank speakers scheduled for later in the day.

As of 0945 GMT the benchmark Stoxx 600 was drifting lower by 0.05% or 1.68 points at 373.93, while the Dax was losing 0.47% and the Cac 40 was off by 0.19%.

On Wednesday, two US Federal Reserve governors, Lael Brainard and Jerome Powell, left the door wide open for a possible interest rate hike at the central bank's next policy meeting on 14-15 March.

That saw the implied market probability of a 25 basis point rate hike at that meeting rise to 77.5% from 66.4% during the previous session.

Commenting on recent events, Michael Hewson, chief market analyst at CMC Markets UK, said: "The US remains the key driver of markets right now and the sudden hawkish stance of a number of previously dovish Fed officials has caught investors somewhat off guard in the past week or so, and pushing the prospect that we’ll see another interest rate rise into a realistic prospect. In fact such has been the turnaround in expectations, that a rate move looks more or less a done deal."

Economic news out of the euro area was mixed with the services purchasing managers' index for February unexpectedly slipping very slightly to 55.5, when it was expected to stay at 55.6.

However, the composite PMI rose from 54.4 in January to 56.0 for February, though this was expected.

Chris Williamson, Chief Business Economist at IHS Markit said: "The final PMI numbers paint a bright picture of a eurozone economy starting to fire on all cylinders.

"[...] Both France and Germany look to be on course to grow by 0.6% in the first quarter, with Spain set for at least a 0.7% expansion. Italy is lagging behind but is nevertheless enjoying its best growth for over a year, likely to see GDP rise by 0.4% in the first quarter."

Shares in Thyssen Krupp edged higher after a report in WirtschaftsWoche that it was studying splitting its European steel unit into a separate company that might be floated with Tata Steel assets fails.

Gemalto said it sees its 2017 profit from operations at between €500 to €520m.

JCDecaux's co-CEO told Reuters it was no longer planning to reduce investments in Britain following Brexit, after "a good first quarter".