- Yellen to be nominated Fed Chair
- Debt ceiling talks continue
- Fed releases meeting minutes
- German and UK industrial data released
FTSE 100: -0.55%
CAC 40: -0.27%
FTSE MIB: 0.97%
IBEX 35: 1.25%
Stoxx 600: -0.65%
European stocks were little changed as Janet Yellen was to be nominated as the new US Federal Reserve Chair and as debt ceiling talks continued.
Obama was due at 15:00 in Washington to to put forward Yellen as the candidate to succeed Ben Bernanke when he steps down next year.
Yellen is the favoured choice among investors as she has supported the central bank's stimulus programme.
"Yellen, the current Vice Chairwoman of the Fed, is believed to be even more dovish than Ben Bernanke, who's term ends on January 31st," said Craig Erlam, Market Analyst at Alpari.
"It's therefore no surprise to see investors respond positively to the news of President Barack Obama's nomination, especially given that he was previously believed to be more in favour of a much more hawkish Lawrence Summers."
The Federal Reserve was also set to release the minutes of last month's policy meeting today.
The meeting minutes will shed further light on the Fed's shock decision to maintain its $85bn per month in bond purchases until seeing further signs of economic recovery.
Yellen's appointment should come as good news for the market following the negativity surrounding the debt ceiling.
The US government shutdown has continued into the second week as Congress continues to wrangle over the federal budget.
The Treasury has until October 17th before reaching the $16.7trn debt ceiling, unless the Treasury takes remedial measures. If the government does not find a resolution by then, the US could theoretically default on its debt, which would send shock waves throughout the rest of the world. In any case, nervousness is expected to increase as the deadline creeps ever closer.
German industrial output rises unexpectedly
German industrial production rose 1.4% in August from July when it fell a revised 1.1%, according to the Economy Ministry in Berlin.
It beat forecasts for an increase of 1%, signalling a further uptick in the recovery of Europe's biggest economy.
In contrast, UK industrial production contracted sharply by 1.1% month-on-month in August, compared to consensus for a rise of 0.4%, the Office for National Statistics said. Manufacturing activity fell by 1.2%, missing economists' predictions for an increase of 0.4%.
Cie. De Saint-Gobain fell after Morgan Stanley cut its rating on the European supplier of building materials to 'underweight' from 'equal weight'.
Alcatel-Lucent declined after French Prime Minister Jean-Marc Ayrault said the network-equipment maker's restructuring plans won't be approved without an agreement limiting job cuts.
Royal Bank of Scotland's shares
fell after a Bloomberg report said the lender has sent records of chats between a former currency trader and other firms to the UK's Financial Conduct Authority (FCA) to be examined for possible violations.
Taylor Wimpey advanced after Goldman Sachs gave the house builder a 'conviction buy' rating.
PSA Peugeot Citroen rose following news China's Dongfeng Motor Corp. will buy a stake in the European carmaker for 10bn yuan.
Vedanta Resources slumped after saying second-quarter copper output in Zambia fell by 26%.
Other asset classes slide
The euro fell 0.41% to the 1.3518 US dollar.
Brent crude futures were down $1.250 to $108.800 per barrel on the ICE.