Europe open: Shares flat as investors eye speech from Fed's Powell

European shares were flat at the open on Tuesday after the previous session’s losses, as investors eyed a policy speech by US Federal Reserve chair Jerome Powell later in the day for any new signs of monetary policy direction after renewed fears of more interest rate hikes.

The pan-regional Stoxx 600 index was down 0.02% at 0823 GMT with most major bourses turning red after gains at the start. Britain’s FTSE 100 was the only index in positive territory.

In economic news, German industrial production fell more than expected in December, down 3.1% on the previous month, the federal statistical office said.

Analysts had forecast a fall 0.7% for the month. For full-year 2022 industrial production was 0.6% lower in calendar-adjusted terms year on year and down 5% from pre-Covid pandemic 2019.

In equity news, BP gained almost 3% as it more than doubled annual profits to $27bn, lifted its dividend by 10% and announced a $2.75bn share buyback.

BNP Paribas shares fell as the lender posted lower-than-expected quarterly profits as a jump of its cost of risk and higher operating expenses offset a boom in its trading sales. The bank still raised its 2025 targets and announced a €5bn share buyback.

Ams-Osram slumped 11% after missing revenue forecasts.

Reporting by Frank Prenesti for Sharecast.com