Europe open: Shares make cautious start after Monday rally

European shares made a cautious start to Tuesday’s session after yesterday’s strong gains as weaker commodity prices hit miners.

The benchmark Stoxx 600 index had crept into positive territory as Asian shares fell overnight. Regional bourses were mixed.

Investors were eyeing eurozone CPI readings later in the morning, with economists are expecting the level to hold steady at 0.9%, while the core reading is predicted to cool from 1.4% to 1.1%.

German and French government bond yields rose last week on concerns about higher inflation.

In equity news, oil majors Royal Dutch Shell, BP and Total fell as crude prices dropped on worries about a demand slowdown in China.

Shares in Taylor Wimpey rose after the UK housebuilder said it would resume dividend payouts as sales and profits met expectations during an otherwise "unusual and volatile year".

Equipment rental firm Ashtead fell, despite forecasting full-year results were set to be ahead of its previous expectations after it outperformed the market in the nine months to the end of January 2021.

German meal-kit delivery company HelloFresh fell 3.2% even as the company reported fourth-quarter sales above market expectations.