Europe open: Stocks little changed as investors await raft of key data

European stocks were little changed in early trade as investors awaited a raft of key data releases on both sides of the pond.

On Thursday, basic resources and energy shares were hit as gold prices fell to a five-year low amid growing expectations of a Federal Reserve rate hike in December, and oil prices slumped after the US Energy Information Administration reported a bigger-than-expected increase in crude supplies for last week.

Both sectors recovered on Friday, however, in line with metals and oil prices but regional indices in Europe were struggling for direction as investors continued to fret about the slowdown in China and the possibility of a rate hike in the US.

At 0900 GMT, the benchmark Stoxx Europe 600 index was down 0.2%, while Germany’s DAX and France’s CAC 40 were flat.

Deutsche Bank strategist Jim Reid said: “Central bankers continue to be the main drivers on both sides of the Atlantic.

“In the US all three Fed speakers yesterday gave indications that the Fed are ready to hike with caveats about the pace of hikes. Even the usually dovish Dudley suggested the conditions for a monetary policy normalisation could soon be satisfied and the risks of acting too soon and waiting too long as nearly balanced. Bullard and Evans did not provide much opposition to that even though Evans suggested that increases should be gradual.”

Aerospace and engineering firm Rolls-Royce suffered losses for a second day running – albeit much less severe – after it said on Thursday that earnings for the year will be at the low end of guidance as it downgraded its expectations for next year and warned of a possible dividend cut.

Roche was under pressure after the Swiss drug maker said it will stop manufacturing at four sites in Europe and the US, putting up to 1,200 jobs at risk.

On the upside, shares in Syngenta surged following media reports the agricultural company was offered $42bn in a takeover offer by ChemChina. Bloomberg later reported that Syngenta had rejected the offer.

French telecommunications company Bouygues rallied after posting a rise in third quarter operating profit and confirming its 2015 targets.

On the macroeconomic front, data from Destatis showed the German economy registered a slight slowdown in the third quarter.

The country’s gross domestic product expanded a seasonally adjusted 0.3% from the previous quarter, in line with the 0.3% gain analysts had expected but lower than the 0.4% reading registered in the previous three months.

However, on a year-on-year basis, German GDP rose 1.7%, higher than the 1.6% gain it registered in the second quarter but short of the 1.8% hike analysts had expected.

The flash estimate of third quarter Eurozone GDP is at 1000 GMT, along with trade balance figures for the bloc. In the US, retail sales and PPI are at 1330 GMT while business inventories and University of Michigan consumer confidence are at 1500 GMT.