- Ifo releases German business climate index
- US new home sales report released
- Eurogroup's finance ministers meet
- Draghi addresses deflation risk
FTSE 100: -1.08%
CAC 40: -0.01%
FTSE MIB: -0.57%
IBEX 35: 0.03%
Stoxx 600: -0.62%
European stocks were little changed as investors awaited the Ifo institute's business climate index for Germany and a report on US new home sales.
The business climate index, which measures firms' sentiment about the current business situation and their expectations for the next six months, is forecast to rise to 110 in January from 109.5 in December.
Later in the US, a report on new home sales is expected to show a 1.9% drop for December, compared to a 2.1% fall a month earlier.
The data comes ahead of the Federal Reserve's policy meeting on Wednesday. Policymakers are looking for signs of further recovery before announcing another round of monetary stimulus tapering. The Fed began unwinding its monthly asset purchases by $10bn to $75n in December.
Meanwhile, Eurogroup finance ministers are scheduled to meet this afternoon and the banking union will be on the agenda.
On Saturday, Eurogroup Chairman Jeroen Dijsselbloem said he hopes this year's asset quality review and stress tests of European banks will reveal some bad news to give the process credibility.
"Actually I rather hope it's going to unveil some unpleasantness because that will give us confidence that things are being done properly," he told the World Economic Forum in Davos, Switzerland.
ECB to tackle deflation risk
European Central Bank (ECB) President Mario Draghi has signalled that the monetary authority would begin buying packages of bank loans to households and companies to ward off deflation.
Speaking at Davos, Draghi said he favoured looking at a way to package bank loans to the private sector and for the ECB to buy them if economic conditions worsened.
It would be in stark contrast to traditional quantitative easing and provide a potential fix to the collapse in bank lending in the currency bloc.
"What other assets would we buy? One thing is bank loans [...] the issue for further thinking in the future is to have an asset that would capture and package bank loans in the proper way," Draghi added.
AT&T rules out bid for Vodafone
declined after AT&T said it doesn't intend to make an offer for the mobile-phone operator.
RSA Insurance Group dropped after The Sunday Times reported it is considering scrapping its final dividend to raise £500m to fill a balance-sheet loss.
Lanxess rallied after the chemical maker announced the appointment of Matthias Zachert as its new Chief Executive Officer.
The euro rose 0.11% to $1.3693.
Brent crude futures fell $0.372 to $107.480 per barrel, according to ICE data.