Europe open: Stocks take their cue from downbeat US session

European stocks slipped in early trade, taking their cue from a downbeat session in the US, as investors continued to keep an eye on commodity markets.

At 0900 GMT, the benchmark Stoxx Europe 600 index was down 0.3%, France’s CAC 40 was 0.4% weaker and German’s DAX was down 0.2%.

“The sentiment in the European session is painted by the negative tone which was set by Wall Street last night,” said Naeem Aslam, chief market analyst at AvaTrade.

“Investors are staying vigilant overall and they surely do not feel comfortable to jump back in with their full appetite. The reason is doubtless that we have the Fed decision next week and this could be the first time in nearly 10 years that the Fed could be raising rates. Although, it is very much priced in the market, however, you can never underestimate the volatility element which it is going to bring.”

In corporate news, Premier Inn and Costa owner Whitbread slumped as investors were left disappointed by signs of weakness at the Costa division after the company’s interim management statement.

French hotel group Accor was on the back foot after announcing a $2.9bn acquisition.

Shares in Zara owner Inditex were lower after it said net profit rose 20% in the first nine months of the year.

On the upside, Glencore rallied after outlining a new cost-cutting programme and new debt reduction forecasts.

EDF rocketed after the French utility company lifted its 2015 profit target.

Volkswagen was in the spotlight ahead of a press conference later during which the car maker will update the market on the emissions scandal with its diesel vehicles and the group’s restructuring.

There are no major Eurozone data releases due, but in the UK, eyes will be on the Bank of England rate announcement at 1200 GMT. No change is expected to rates or the asset-purchase programme.

In the US, the import price index for November and initial jobless claims are due at 1330 GMT.