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European stocks close lower after Fed comments; oil slides

Arjun Kharpal
Win McNamee | Getty Images

European stocks closed lower on Monday as crude oil futures fell and the U.S. dollar strengthened after hawkish comments from U.S. Federal Reserve Chair Janet Yellen on Friday.

Most major European bourses were all lower on Monday. Germany's DAX (^GDAXI) was down 0.5 percent in afternoon trade, while the French CAC (Euronext Paris: .FCHI) was down around 0.7 percent. London's FTSE 100 (FTSE International: .FTSE) was closed for a public holiday.

Yellen said the case for a rate hike had "strengthened in recent months" pointing towards the "solid performance" of the labor market in a speech at the annual Jackson Hole gathering of central bankers on Friday.

U.S. stock indexes opened slightly higher on Monday.

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Fed Vice Chairman Stanley Fischer backed up Yellen's view in an interview with CNBC. Asked whether there could be a rate hike next month and more than one this year, Fischer said that Yellen's comments were "consistent with answering yes to both" of the questions.

Asian markets were broadly lower with the negativity spilling into Europe. The stronger dollar, which was bolstered by Yellen's comments, also weighed on oil prices.

In individual stock news, shares of France's Alstom (Euronext Paris: ALO-FR) rallied by over 3 percent after the engineering firm was awarded a $2 billion contract by Amtrak to supply new high-speed trains.

Roche (Swiss Exchange: ROG-CH) shares reacted positively after the Swiss pharmaceutical giant said it received emergency use authorization for its Zika virus test by the U.S. Food and Drug Administration (FDA).

Norwegian oil major Statoil (Oslo Stock Exchange: STL-NO) announced plans to cut costs at its Sverdrup oil field while raising output. Shares in the firm were higher in early trade before reversing gains to trade flat.

And the Financial Times reported that Poland's PZU is confident about reaching a deal to buy UniCredit's (Milan Stock Exchange: UCG'S-IT) Pekao bank by the end of October. Shares in the firm reversed gains to trade lower.

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