Europe open: Stocks start modestly lower ahead of Chinese plenum, US Fed meeting

Investors took some money off the table at the start of the week ahead of a much anticipated policy meeting of the US central bank, although the focus was expected to be on the results of the Chinese Communist Party’s plenum to thrash out the country’s next five-year economic plan.

As of 08:28 the benchmark DJ Stoxx 600 was 0.52% or 1.98 points lower to 375.32, the Dax-30 down by another 0.25% to 10,767.47 and the Cac-40 in Paris by 0.77% to 4,885.90.

"Since [September], it has been confirmed that economic growth in China has fallen below the government target while economic sentiment in Europe is continually plagued by both low inflation and stagnant growth and concerns remain elevated about the pace of economic recovery in Japan.

“Under this logic and the statement made by the FOMC in September, it has become very difficult to argue for a US rate rise in 2015," said Jameel Ahmad, chief market analyst at FXTM.

Chinese Communist Party plenum in focus

At this week’s plenum China’s top-ranking officials were set to decide on their next five-year plan.

The focus was expected to be on reducing the state’s role in the economy and the possible reform of state owned enterprises. Authorities were also expected to unveil their GDP growth target for the coming years.

German IFO index retreats by less than expected in September

The Volkswagen scandal and the poor news out of China took their toll on German businesses’ confidence, a survey from a leading think-tank revealed.

The IFO institute’s business confidence index for the month of October slipped to a reading of 108.2 from September’s 108.5. Economists had pencilled in a print of 107.8.

However, a sub-index of companies’ expectations improved to a reading of 103.8 after a print of 103.3 for the month before (consensus: 102.4).

Securitas AB jumped on news that Diebold Inc. had agreed to sell its North America security business.

Aberdeen Asset Management was higher on the heels of a report in the Financial Times – denied by the fund manager - that the firm had put itself on the block.

Another report from the FT dragged Deutsche Bank 1.7% lower. US regulators were expanding a money-laundering investigation into the lender’s Russian unit, the newspaper reported.

The euro/dollar was edging higher by 0.22% to hit 1.1037 and front month Brent crude futures up by 0.42% to $48.19 per barrel on the ICE.