Europe open: Stocks flat as investors eye Yellen

European stocks were little changed in early trade as investors paused for breath ahead of a speech by Federal Reserve chair Janet Yellen later in the day.

At 0850 GMT, the benchmark Stoxx Europe 600 index was up 0.1%, while Germany’s DAX and France’s CAC 40 were both 0.1% lower.

Meanwhile, oil prices nudged higher, with West Texas Intermediate and Brent crude up 0.2% to $45.67 a barrel and $46.73, respectively.

Dave Jeal, head of investment products at Interactive Investor, said; “Last week's US election result caused markets to display dismay, then relief, and now a pause for reflection on the longer term implications and expectations.

“What this means for investors depends on their outlook. Our recent poll showed just under half of investors are selling some, or a significant proportion, of their investments on increased fears. That's double the number of sellers compared to just four weeks ago.”

In corporate news, food retail group Ahold Delhaize was in the red as its third-quarter results missed expectations, while Royal Mail fell after it said half-year revenue edged up thanks to its European business but the EU referendum resulted in a reduction in UK marketing activity.

Building materials group CRH nudged lower as it reported a 6% rise in cumulative sales in the first nine months of the year and said it continues to expect earnings for the year to be in excess of €3bn.

On the upside, Zurich Insurance advanced as it said it was aiming to maintain an annual dividend of CHF17 and cut its costs further.

Julius Baer edged higher after reporting that assets under management in the first ten months of the year rose 9%.

Johnson Matthey nudged up as it posted a 5% rise in first-half underlying pre-tax profit, while Rio Tinto gained after terminating the contracts of two directors following an internal review into a controversial payment to a consultant concerning the Simando iron ore project in Guinea.

Investors will eye the release of the minutes from the European Central Bank’s October meeting at 1230 GMT and Yellen’s testimony before Congress at 1500 GMT.

On the data front, investors will watch for eurozone inflation figures at 1000 GMT, while in the US, the consumer price index, housing starts and initial jobless claims are at 1330 GMT.