Europe open: Stocks static as investors digest hawkish Fed statement

European stocks were little changed in early trade amid a slew of corporate results, as investors digested a hawkish policy statement from the Federal Reserve and looked ahead to some key US data releases.

At 0900 GMT, the benchmark Stoxx Europe 600 and Germany’s DAX were up 0.1%, while France’s CAC was 0.3% weaker.

The Fed stood pat on interest rates on Wednesday as widely expected, but the accompanying statement suggested a rate hike in December may be on the cards.

“The FOMC left the door ajar. If markets don’t tighten financial conditions for them, if the US data remain firm, if global events don’t scare them and if the sun shines every day, the Fed will raise rates at their December meeting,” said Societe Generale strategist Kit Juckes.

“All those caveats leave the market pricing the odds of a move at close to 50%, and the focus switches immediately to data-watching. Today that means jobless claims and 3Q GDP.”

In corporate news, Barclays was in the red after it posted a drop in third-quarter pre-tax profit as the cost of claims settlements weighed on results and revenues fell. The company paid out £560m in compensation to customers who had been missold foreign exchange products and to settle claims over US mortgage-backed securities.

Deutsche Bank fell after saying it will scrap its 2015 and 2016 dividends as it looks to boost capital.

Smith & Nephew, a maker of artificial hips and knees, fell sharply in early trade. The company posted a small increase in underlying third-quarter revenue, maintained its full-year guidance and announced the acquisition of robotics company Blue Belt Technologies. Reported revenue, however, was down 4% due to currency headwinds.

Royal Dutch Shell slipped after the company slumped to a third-quarter loss of $6.1bn (£4bn), with earnings well short of forecasts.

BT Group was also on the back foot after posting a drop in second-quarter operating profit.

On the upside, UK insurer Aviva advanced after saying the value of its new business rose 25% in the first nine months of the year to £823m, marking the eleventh consecutive quarter of growth.

Later in the session, investors will eye a batch of US data, with initial jobless claims and the first release of third-quarter GDP due at 1230 GMT, and pending home sales at 1400 GMT.