Europe open: Stocks retreat as basic resources drop on copper prices

“Current expectations place a 66% chance on US rates being raised in December, but this may change with today's Federal Reserve minutes,” said Rebecca O’Keeffe, head of investment at Interactive Investor.

“The prospect of a rate rise is a key risk for markets, with no one quite sure just what reaction there will be when the Fed finally pushes the button, so the continued uncertainty means market sentiment remains fragile.”

Developments in France also weighed on sentiment, after authorities reportedly killed two suspects in the Parisian suburb of Saint Denis early on Wednesday following last Friday’s terrorist attacks.

On Tuesday night, an international football match in Germany was cancelled due to a security alert, while two Paris-bound Air France flights from the US were diverted due to bomb threats.

At 0850 GMT, the benchmark Stoxx Europe 600 index and Germany’s DAX were down 0.5%, while France’s CAC 40 was 0.9% weaker.

Basic resources were the worst performers, with the Stoxx 600 index for the sector down 1% as copper prices breached six-year lows amid growing concerns about reduced demand, particularly from China.

In London, Anglo American slid 2% while BHP Billiton fell 1.8%.

Data released by China’s National Bureau of Statistics showed the home-price recovery slowed in October, with prices up by 0.07% following a 0.2% rise in September. Of the 70 cities polled, only 27 saw a rise in home prices compared with 39 in September, and 33 cities’ home prices fell, compared with 21 the previous month.

On the corporate front, Hikma Pharmaceuticals rallied after saying it has overcome concerns raised by the US Food and Drug Administration over environment monitoring issues at its Portugal plant.

On the downside, France’s Air Liquide slid after it announced it will buy US peer Airgas Inc in a $13.4bn (£8.8bn) deal.

On the economic calendar, Eurozone construction output is at 1000 GMT, while US housing starts are at 1330 GMT.