US open: Stocks flat after dovish comments from Fed member

US stocks were broadly flat early on Monday as investors came to term for renewed calls for a postponement in the hike of interest rates.

Just before 15:00 BST, the Dow Jones Industrial Average was up five points, while the S&P 500 and the Nasdaq declined two and seven points respectively.

The outlook for economic growth and the jobs market in the US is “good” but inflation is “too low” and has been so for the last six years, the president of the Federal Reserve Bank of Chicago, Charles Evans, said in a speech in Stockholm.

“The Fed should refrain from raising the federal funds rate until there is much greater confidence that inflation one or two years ahead will be at our 2% target,” he said.

“I see no compelling reason for us to be in a hurry to tighten financial conditions until then.”

The release of the minutes of the Federal Open Market Committee meeting from 29 April on Wednesday and could shed light on the timing of the first rate hike.

“In the Fed’s last meeting it rightfully downgraded its view on the economy but still implied a rate hike could happen as early as June,” said Jasper Lawler, analyst at CMC Markets.

“It seems pretty unlikely now that the Fed would risk a move in June but depending on the minutes, September could still be on.

“A determination to hike rates despite the poor data could rattle markets, but given the minutes are two-weeks old, investors may just look through them. “

The earnings season continues with a host of retailers reporting this week, starting with Urban Outfitters on Monday.

Women’s apparel retailer Ann surged 21.2% after receiving a $2bn takeover offer from AscenaRetail Group, which would value Ann shares at $47 each, representing a 21% premium on Friday’s closing price.

Ascena shares jumped 7.71%

Elsewhere, European stocks were mixed, with the German DAX gaining 0.1%, while over in Asia the Nikkei 225 Index climbed 0.8% but Chinese stocks slid.

Oil prices were mixed, with West Texas Intermediate climbing 0.25% to $59.84 a barrel, while Brent shed 0.60% to $66.41 a barrel.

The dollar advanced 0.37% against the pound, while the greenback gained 0.43% against then yen and 0.80% against the euro. Meanwhile, gold futures gained 0.16% to $1,227.30.