Europe open: Stocks waver as investors digest BP, BNP Paribas earnings

European stocks wavered in early trade following disappointing earnings from oil giant BP and France’s BNP Paribas, amid rising political uncertainty.

At 0850 GMT, the benchmark Stoxx Europe 600 index was up 0.2%, Germany’s DAX was 0.1% firmer and France’s CAC 40 was flat.

Meanwhile, the euro was under pressure amid worries about the political situation in the bloc ahead of several national elections this year.

In particular, market participants were concerned about growing support for National Front candidate Marine Le Pen, who officially launched her bid for the French presidency on Sunday, saying she wants to ditch the European Union and the euro and close the borders on immigrants.

Andy McLevey, head of dealing at stockbroker Interactive Investor, said: “As markets remain under pressure in subdued trading it remains to be seen what the catalyst will be to drive markets higher in the short term with many risk averse investors taking to the sidelines.”

In corporate news, oil giant BP gushed lower after its fourth-quarter profits fell short of target and the company said cash flow will not increase in 2017 as it hikes its level of disposals and capital expenditure to return the business to growth in the medium term. A fourth-quarter underlying replacement cost profit of $400m resulted in a full year profit of $2.6bn, a 56% drop from the previous year.

BNP Paribas was also on the back foot as its fourth-quarter profit fell short of analysts’ estimates.

On the upside, chip maker AMS surged after its fourth-quarter revenue came in at the top end of the company's expectations.

UK and North America passenger transport operator FirstGroup advanced as it reported that group revenue in the third quarter rose by 12.8%, benefiting from favourable currency translation but was flat at constant currency. The group said the trend of overall trading and expectations for the full year was unchanged.

Housebuilder Bellway rallied as it posted a 6.5% jump in housing completions in the six months to the end of January and said it expects to build 5% more homes this year. Peers followed suit, with Barratt Developments, Persimmon and Taylor Wimpey all in the black.

Later in the session, the focus will turn to the US, where trade balance figures are due at 1330 GMT.