Europe open: Stocks waver as investors mull Yellen comments

European stocks wavered in early trade as investors mulled over Federal Reserve chair Janet Yellen’s comments last Friday, ahead of this week’s European Central Bank rate announcement.

At 0900 BST, the benchmark Stoxx Europe 600 index and Germany’s DAX were off 0.1%, while France’s CAC 40 was flat.

Meanwhile, oil prices retreated after Baker Hughes data showed the number of active oil rigs in the US last week rose by four to 432. West Texas Intermediate was down 0.8% to $49.97 a barrel and Brent crude was off 0.7% at $51.60.

On Friday, Yellen said in a speech that policymakers need to consider the potential for a “high pressure economy” and let inflation continue to rise. Her comments boosted the dollar, which hit its highest level since March.

Accendo Markets research analyst Henry Croft said: “European markets are expected to remain cautious in the run up to Thursday’s meeting of European Central Bank policy makers as US Q3 earnings releases continue after a strong showing from heavyweight financials JP Morgan and Citibank on Friday.”

In corporate news, Banco Popolare and Banco Popolare di Milano were in focus after shareholders approved a merger between the two.

Swedish retailer Hennes & Mauritz nudged lower after it reported a 1% increase in sales in September.

Education publisher Pearson was under the cosh after posting a drop in underlying sales for the nine months to the end of September.

Automotive supplier Continental AG was trading flat after agreeing to buy rival Konrad Hornschurch.

On the data front, eurozone inflation figures are due at 1000 BST, while in the US, Empire State manufacturing and industrial production are at 1330 BST and 1415 BST, respectively.