Europe open: Stocks edge lower as investors book profits

At 0850 GMT, the benchmark Stoxx Europe 600 index and Germany’s DAX were off 0.3% and France’s CAC 40 was flat.

“At this stage especially with only a very limited amount of new data being scheduled to be released today it is still unclear if the current up-move has run its course or if this is merely a 'normal' and much needed consolidation before the next leg higher,” said Markus Huber, senior analyst at Peregrine & Black.

“Overall sentiment remains neutral to positive with range-trading likely for the first part of the day.”

Oil prices remained in the red, having moved lower on Thursday after data from the US Energy Information Administration showed crude inventories rose by 2.1m barrels last week to 504.1m barrels.

West Texas Intermediate was down 0.8% at $30.52 a barrel while Brent crude was 0.5% weaker at $34.10.

On the corporate front, Allianz was weaker after the German insurer’s fourth quarter profit missed analysts’ expectations.

Aegon slid after the Dutch insurer’s fourth quarter earnings missed consensus forecasts.

Kering rallied after the French luxury goods maker posted better-than-expected fourth quarter revenue.

Standard Life was in the black as the insurer and asset manager’s 2015 operating profit beat estimates.

AstraZeneca was little changed after saying the European Commission has granted marketing authorisation for its Zurampic and Brilique drugs.

Meanwhile, investors digested figures from Destatis showing German producer prices fell more than expected in January.

Producer prices were down 0.7% on the month compared with a 0.5% drop in December and economists’ expectations for a 0.3% decline.

On the year, prices were 2.4% weaker compared with a 2.3% drop the previous month. This was steeper than the 2% fall forecast by economists.

Still to come, the US consumer price index is at 1330 GMT while Eurozone consumer confidence is at 1500 GMT.