Europe open: Shares up on quiet day; Atos slumps on cash flow warning

European shares made a subdued start to the week with a quiet day expected due to the Martin Luther King holiday in the US, although French IT firm Atos was in focus after a warning on cash flow and appointment of a new chief executive.

The pan-European Stoxx 600 index was up 0.17% at 477.56 in early deals with all major regional bourses higher. Investors will also be keeping an eye on the annual corporate talkfest at Davos, Switzerland.

In economic news, China kept a key lending rate unchanged, leaving the rate for one-year loans to financial institutions, or medium-term lending facility, at 2.5%.

Oil prices were lower after US military strikes on Yemen aimed at Iran-back Houthi militants who have been firing on commercial vessels in the Red Sea. Benchmark Brent crude was down 0.2% to $78.13.

In equity news, shares in Atos plunged by 14% after the French technology company warned that free cash flow would be slightly below its initial target for the second half of the year. It also named Paul Saleh as its new chief executive.

Reporting by Frank Prenesti for Sharecast.com