Europe open: Stocks waver ahead of central bank meetings

European stocks wavered in early trade as oil prices fell back, with investors looking ahead to rate announcements from the Bank of Japan and the Federal Reserve on Wednesday.

At 0845 BST, the benchmark Stoxx Europe 600 index was down 0.1%, Germany’s DAX was up 0.2% and France’s CAC 40 was down 0.2%.

Meanwhile, oil prices retreated. West Texas Intermediate was down 0.7% at $42.98 a barrel and Brent crude was 0.7% lower at $45.64.

Andy McLevey, head of dealing at stockbroker Interactive Investor, said: “European markets nudged easier in subdued early trading as crude gave up the gains of yesterday and investors adopt a wait-and-see approach ahead of the central bank meetings this week.

"With little on the corporate earnings front to tempt investors out of their cautious malaise all eyes remain focused on Wednesday's announcements from the Fed and Bank of Japan.”

In corporate news, Bayer gained ground after lifting sales targets for its top-selling drugs.

B&Q and Screwfix owner Kingfisher traded higher after it nailed an encouraging increase in first half profits and confirmed early progress in chief executive Véronique Laury's ambitious turnaround project.

Water utility and waste management company Pennon Group was in the black as it said it is on course to meet expectations for the 2017 financial year as its portfolio of energy recovery facilities remains on track to meet its target.

Sports Direct nudged up as it agreed to undertake an independent review of its working practices and corporate governance.

Pharmaceutical giant GlaxoSmithKline was weaker after announcing that Emma Walmsley - the current chief executive of the company’s consumer healthcare division - is to be appointed CEO designate, and will succeed Andrew Witty as CEO when he retires on 31 March 2017.

FTSE 250 spreadbetting firm IG Group fell sharply after saying it performed well in the three months to the end of August in what was a challenging quarter, but reporting a drop in UK & Ireland revenue and revenue per client as markets became increasingly subdued after Brexit.

On the macroeconomic front, figures from Destatis showed German producer prices fell more than expected in August.

Producer prices were down 0.1% from July and 1.6% from August last year, versus expectations of a 0.1% and 1.5% drop, respectively. Energy prices were the biggest drag, down 5.5% from the same month last year.