Europe open: Stocks little changed, investor mood more cautious

Stocks in Europe are little changed in early trading with investors sitting on their hands ahead of the US central bank's eagerly awaited scheduled for the next day.

Commenting on the mood in equity markets on both sides of the Atlantic, Bob Doll, Chief Equity Strategist at Nuveen, said that stock market valuations "looked lofty" even as a number of near-term risks might materialise which could trigger a pullback in share prices.

"Investors continue to bid up stock prices, despite mounting evidence that the economic recovery is turning more mixed," Doll said.

"In both the U.S. and in Europe, we have seen signs that areas of the economy are closing or slowing as governments and policymakers are grappling with ways to control the pandemic without a significant medical breakthrough. This suggests that the global economy remains weak, faces numerous challenges and is struggling in places where virus cases are rising."

As of 0830 BST, the benchmark Stoxx 600 was edging up by 0.09% at 370.07, alongside a rise of 0.24% for the German Dax to 13,095.69 while the FTSE Mibtel was adding 0.18% to 20,066.19.

In parallel, euro/dollar was drifting lower by 0.11% to 1.1822 and front month Brent crude oil futures were adding 0.46% to $46.07 a barrel on the ICE.

On the economic side of things, overnight, German authorities approved a further €10bn of expenditures to finance the extension of the country's 'Kurzarbeit' job subsidy scheme until the end of 2021.

Elsewhere, INSEE reported that its French consumer confidence index was relatively stable in August at a reading of 94, the same as in the month before.