Europe open: Stocks drift lower as investors mull central bank policy

European stocks drifted a little lower in early trade as investors continued to mull over the direction of central bank policy.

Mike van Dulken, head of research at Accendo Markets, said: “Looming central bank updates (SNB, BoE today; BoJ, Fed next week) continue to burden investors desperate for more stimulus to keep the accommodative policy market party going or at least signals that tighter policy is not imminent.

“All the while macro data remains mixed and concerns grow about both a waning potency of existing stimulus and fresh options running dry.”

At 0910 BST, the Stoxx Europe 600 index and Germany’s DAX were down 0.1%, while France’s CAC 40 was off 0.4%.

In the UK, the FTSE 100 was down 0.2% as investors awaited the latest rate announcement from the Bank of England. After it cut interest rates for the first time since 2009 last month and embarked on an additional £70bn of asset purchases, no changes are expected on Thursday.

Meanwhile, oil prices were a touch firmer. West Texas Intermediate was 0.1% higher at $43.60 a barrel and Brent crude 0.3% higher at $45.98.

On the corporate front, Swedish retailer H&M was under the cosh after it posted a rise in August sales that fell significantly short of analysts’ expectations.

EDF was also in the red after the UK government gave the go ahead to the Hinkley Point C nuclear power station.

High street fashion stalwart Next was under the cosh after posting a drop in first-half profit and highlighting challenging trading since July.

GlaxoSmithKline nudged down despite saying its shingles vaccine proved highly successful in a trial among elderly patients.

On the upside, Zodiac Aerospace was a high riser after it reported better-than-expected revenues for the full year.

Supermarket chain Wm. Morrison was on the front foot after it reported a jump in first-half profit, while Informa traded higher after announcing plans to buy Penton Information Services for £1.2bn.

On the US economic calendar, initial jobless claims and the Philadelphia Fed survey at 1330 BST are among the highlights.