Europe open: Stocks waver as investors mull over Fed statement

European stocks wavered in early trade as investors digested the Federal Reserve’s latest statement, which left the door open to a rate hike in March.

At 0850 GMT, the benchmark Stoxx Europe 600 index and Germany's DAX were both down 0.1%, while France’s CAC 40 was up 0.3%.

Stocks on Wall Street ended a choppy session in the red on Wednesday after the Federal Reserve stood pad on interest rates, as widely expected, noting the recent turmoil in financial markets and saying it would be “closely monitoring” global economic and financial developments.

The Fed removed a previous reference to the risks of the economic outlook being balanced from its statement and that it was “reasonably confident” about the 2% medium-term inflation target. Instead, the US central bank said it would be keeping an eye on how the economy and financial markets could impact the outlook.

Other than that, however, the US central bank seemed committed to its plan of gradual interest rate hikes as long as job growth stays strong.

"The committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate,” it said.

“The Fed statement acknowledged the obvious downside risks to growth and the turmoil in asset markets, but the nuances did not go as far as to alter perceptions of the course of interest rates this year,” Societe Generale said in a note.

In corporate news, Deutsche Bank edged lower after posting its first annual loss since 2008, in line with its statement last week.

Hennes & Mauritz was under pressure after the retailer’s fourth quarter earnings missed analysts’ expectations.

In London, drinks giant Diageo slipped into the red after its interim results. The company reported a slight rise in first half pre-tax profit despite a drop in revenue, as organic sales grew more than expected.

Pharmaceuticals group AstraZeneca was a touch weaker despite announcing that one of its cancer therapies reached a new milestone.

Elsewhere, Swiss drug maker Roche was under the cosh after its full year earnings fell short of estimates.

Oil prices were fairly steady early on Thursday, having racked up solid gains in the previous session after Russia said it might cooperate with Saudi Arabia and other OPEC countries to control global oversupply. West Texas Intermediate was flat at $32.29 and Brent crude was up 0.4% at $33.22.

Still to come on the data front, Eurozone consumer confidence is at 1000 GMT.

In the US, initial jobless claims and durable goods orders are at 1330 GMT, while pending home sales are at 1500 GMT.