Europe open: Stocks little changed ahead of Fed; UniCredit in focus

European stocks were little changed in early trade as investors digested news that UniCredit was planning Italy’s biggest ever share issue and as the Federal Reserve kicks off its two-day policy meeting.

At 0840 GMT, the benchmark Stoxx Europe 600 index and France’s CAC 40 were up 0.1%, while Germany’s DAX was 0.3% firmer.

Andy McLevey, head of dealing at Interactive Investor, said: "With the two-day Fed meeting getting underway ahead of tomorrow's rate announcement many investors will be content to look on from the sidelines. Although a rate hike is largely priced in investors will be examining the statement in detail for clues on future policy following Donald Trump's surprise election victory."

Meanwhile, oil prices retreated, with investors taking profits after they surged to mid-2015 highs following an agreement between OPEC and non-OPEC members to cut production. West Texas Intermediate was down 0.5% to $52.57 a barrel and Brent crude was 0.4% lower at $55.46.

In corporate news, UniCredit was higher, reversing brief losses incurred immediately after the Italian bank announced plans to raise €13bn and cut jobs as it looks to clean up its balance sheet.

Tony Cross, market analyst for TopTradr, said: “On the basis that the funding gap is less pressing, we shouldn’t see the knee-jerk reaction Monte dei Paschi’s woes generated last week.”

Anheuser Busch InBev nudged a touch higher on news Japanese brewer Asahi will pay $7.8bn for some of its beer brands.

France’s Vivendi edged down after revealing it has taken a 3% stake in Italian broadcaster Mediaset, whose shares surged 25%.

Infrastructure construction group Balfour Beatty was a little firmer after saying it expects to finish the year with a positive cash balance as it completes the first phase of chief executive Leo Quinn's two-year turnaround process.

UBM advanced after agreeing to buy privately-owned Asian exhibitions company Allworld Exhibitions for a cash consideration that values the business at $485m on a debt and cash free basis.

Old Mutual pushed up after saying its asset management business will float on the London Stock Exchange with an offering of 13m shares and the equity raised will be used for “general corporate purposes”.

Housebuilder Bellway rallied s it reported a 7% jump in reservations in the 18-week period to 4 December and said it expects housing completions for the year to the end of July 2017 to rise by 5%.

Still to come on the data front, the German ZEW survey is at 1000 GMT.