Europe open: Shares flat ahead of Fed; Bayer falls on court ruling

European shares were flat on Monday as investors awaited a US interest rate decision this week.

The pan-European Stoxx 600 index barely moved the needle in early deals, with only France’s CAC 40 and Britain’s FTSE 100 eking out gains.

Asia shares were largely higher overnight, although China’s Shanghai index fell on new that troubled property developer Evergrande was ordered to be liquidated by a Hong Kong court. Hong Kong-listed shares of Evergrande plunged 12.2% before trading was suspended.

The US Federal Reserve will announce its latest interest rate decision, with markets expecting the central bank to hold rates steady after weeks of comments from policymakers that early cuts were unlikely in the face of persistent inflation.

“The jury remains split between a cut in either March or May, with the expected six cuts this year likely to be the focus of disappointment should the Fed indicate that such a series seems unlikely given current conditions,” said Interactive Investor head of markets Richard Hunter.

Investors will also be analysing the non-farm payrolls report is also due on Friday, with consensus estimates pointing to 173000 jobs having been added in January compared to 216000 the previous month, and unemployment expected to tick up slightly from 3.7% to 3.8%.

In equity news, shares in Bayer were down after the German company was ordered to pay $2.25bn in damages in the latest and largest payout so far as part of the long-running court case related to an alleged carcinogenic effect of its Roundup weedkiller.

Ryanair shares fell after the budget carrier cut its full-year profit forecast and posted a 93% decline in third-quarter net profit, as higher fuel costs offset revenue gains and after its flights were removed from online travel agents.

Reporting by Frank Prenesti for Sharecast.com