Europe open: Stocks push lower ahead of Yellen speech

European stocks pushed lower early on Thursday as traders took some money off the table ahead of an eagerly-awaited speech by Federal Reserve Chair Janet Yellen at Jackson Hole on Friday.

At 0840 BST, the benchmark Stoxx Europe 600 was down 0.8%, Germany’s DAX was 0.7% weaker and France’s CAC 40 was off 0.9%.

At the same time, oil prices were steady. West Texas Intermediate was up 0.1% to $46.82 a barrel while Brent crude was flat at $49.03.

Dave Jeal, head of investment products at stockbroker Interactive Investor said: “For investors all eyes are on the Fed's Janet Yellen's presentation tomorrow. With investors hoping for a clearer sense of timing on the next US rate move, the market is likely to be in standby mode today.

“The interest rate move is pretty certain to be up and should already be priced into markets. And to a degree it is - but the market is only pricing in a 28% chance of a rise in September. However some Fed members are signalling that a rise is far more likely than the market thinks. A real disconnect has developed. Will Yellen's remarks remove the uncertainty, or will she hedge her bets? With the US election in November, if rates don't move now, the Fed is unlikely to be able to move much before the year end.”

In corporate news, Handelsbanken edged lower after it sold its voting stake in investment-holding company AB Industrivarden.

Offshore drilling company Seadrill was on the back foot after reporting a 31% drop in net profit in the three months to the end of June.

On the upside, German market research firm GFK surged following a media report that its majority owner is considering a merger or sale.

Supermarket chain operator Ahold Delhaize was in the black after better-than-expected second-quarter earnings.

Building materials group CRH was higher as it lifted its half-year dividend a touch after making more progress with its deleveraging and reporting the early stages of an economic recovery in Europe.

Coming up, investors will watch for the release of the German Ifo business survey at 0900 BST. In the US, durable goods orders are at 1330 BST along with initial jobless claims. Markit’s US services purchasing managers’ index is at 1445 BST.