Europe open: Stocks little changed; Deutsche Bank slumps on Q4 earnings

European stocks were little changed in early trade as investors sifted through a raft of corporate earnings, with Deutsche Bank under pressure after its fourth-quarter numbers disappointed.

At 0855 GMT, the benchmark Stoxx Europe 600 index was down 0.1%, Gerrmany’s DAX was off 0.3% and France’s CAC 40 was flat. In London, the FTSE 100 was up 0.2% as investors awaited the release of the Bank of England’s latest minutes, quarterly Inflation Report and rate announcement.

Market participants were digesting the latest rate announcement from the Federal Reserve late on Wednesday. The bank kept its main policy settings unchanged, as it waited for greater clarity on the new administration's fiscal plans. Since its last meeting, activity in the jobs market had continued to strengthen and economic activity to expand at a moderate pace, the Fed said.

However, unlike at its previous meeting in mid-December, rate-setters pointed out how measures of consumer and business sentiment had improved of late.

Regarding prices, inflation was still below the Fed's 2.0% target, the Fed said, adding that "market-based measures of inflation compensation remain low."

"Near-term risks to the economic outlook appear roughly balanced," the Fed also reiterated in its statement.

Monetary policymakers in Washington DC kept the range for the Fed funds rate at between 0.50% and 0.75%, as expected.

In corporate news, Deutsche Bank was under the cosh as it posted a €1.9bn net loss for the fourth quarter, falling short of expectations as legal costs took their toll.

Novo Nordisk slumped after downgrading its 2017 sales outlook and Daimler fell on the back of a cautious 2017 profit outlook despite posting a jump in fourth-quarter net profit.

AstraZeneca retreated as the pharmaceuticals company cautioned that revenue and profit was set to decline this year as generic versions of its cholesterol drug Crestor dent sales.

Vodafone was also in the red after saying revenue in the third quarter declined by 3.9% and that earnings would be at the lower end of its previous guidance.

Consumer goods company Reckitt Benckiser rallied after confirming that it is in “advanced negotiations” to buy US baby food maker Mead Johnson for around $16.7bn, a move which could bolster its health products business.

Nokia was also on the front foot as the Finnish telecommunications group’s fourth-quarter net profit came in ahead of expectations, while oil giant Shell gained ground despite reporting a 44% drop in fourth-quarter profit.