- Eurozone inflation figures out
- Eurozone unemployment rate to be released
- Yellen signals further tapering
- US GDP in focus later
FTSE 100: 0.02%
CAC 40: 0.12%
FTSE MIB: 0.03%
IBEX 35: -0.16%
Stoxx 600: 0.24%
European stocks were little changed ahead of the release of reports on inflation and unemployment in the Eurozone.
Consumer prices in February are forecast to have risen by 0.8% in February, in line with the prior month, well below the European Central Bank's (ECB) 2% target. Barclays Research and Credit Suisse, on the other hand, see it coming in at 0.6%.
The unemployment rate is expected to have held steady at 12% in January.
Falling inflation and high unemployment have been a major cause for concern in the euro-area, piling pressure on the ECB to enact greater policy measures.
ECB President last night dismissed fears of deflation, but said the monetary authority is aware of the potential downside risks to price stability and will act if needed.
He remained mum on whether the ECB will take action at its policy meeting on Thursday.
At the ECB's last gathering, Draghi said the central bank was awaiting more comprehensive figures, including economic forecasts, in March before considering changing policy.
Meanwhile, in the UK, a consumer-confidence index from GfK came in at -7 this month, the same level as in January, as expected.
Yellen delivers testimony
Federal Reserve Chair Janet Yellen delivered a dovish testimony before the Senate yesterday.
She noted the recent weak economic releases but said she believes harsh winter weather in the US could be to blame for the results and would watch carefully to see if this is the case.
Yellen also reiterated that the Fed will continue to unwind monthly asset purchases. She said the central bank intended to continue to taper until sometime in the fall, although they were not on a "preset course".
In today's US news, attention will turn to gross domestic product (GDP), which is tipped to fall slightly to 2.5% in the fourth quarter from 3.2% previously.
Other US releases include the University of Michigan's consumer confidence, pending home sales, personal consumption and Chicago's purchasing managers' index.
Bayer declined as the German drugmaker reported a fall in fourth quarter earnings that missed analysts' estimates.
Telecom Italia gained as the company's directors supported Chief Executive Officer Marco Patuano's plan to give more influence to minority shareholders on the board.
Belgacom slumped as the Belgian telephone company posted fourth quarter earnings that fell short of market expectations.
The euro rose 0.01% to $1.3711.
Brent crude future fell $0.248 to $108.690 per barrel, according to the ICE.