European markets were up in afternoon as jitters over U.S. monetary policy eased.

Yesterday, Federal Reserve governor Lael Brainard urged caution over a decision to raise interest rates. This followed a warning on Friday from Boston Fed chief Eric Rosengren that the economy risks overheating if rates are kept low for too long, sparking concerns that rates would be lifted.

The Fed will make its final decision known on Sept. 21.

Oil fell sharply after the International Energy agency today warned that global demand for oil was growing slower than it previously thought. The Paris-based agency cut its forecast demand increase for 2016 by 100,000 barrels a day to 1.3 barrels, and its 2017 growth forecast by 200,000 barrels per day to 1.2 million barrels. 

West Texas Intermediate recently lost 2.27% ti $45.24 and Brent Crude down 1.95% at $47.38 a barrel.

In London, the FTSE 100 was recently up 0.15% at 6,711.18.

U.K. online grocer Ocado (OCDDY) shares were down more than 14% in afternoon after it warned that a growing price war between supermarkets is eating into profit margins. The company is also feeling pressure from Amazon (AMZN) - Get Report , which last year launched a food delivery service in the U.K.

"As the market remains very competitive, we are seeing sustained and continuing margin pressure," Ocado CEO Tim Steiner said. In the 12 weeks to Aug. 7 the company saw a 19% growth in orders compared with the same period a year ago. However, the value of each order fell 3.4%.

Data from the U.K.'s Office for National Statistics show house price growth cooled in in the year to July. House prices grew by 8.3% in July, down from 9.7% growth in the 12 months to June. 

This sent house builders down. Barratt Development was down 0.68%, Taylor Wimpey lost 0.65% and Travis Perkins was down 0.50%.

Commercial property developers were also performing badly in London. Shopping center REIT Intu Properties was recently down 2.1%, British Land lost 1.47% and Land Securities was down 1.25%.

In Frankfurt, the Dax was up 0.52% at 10,485.79 and the Cac 40 had gained 0.13% to 4,445.40 in Paris.

In Germany the inflation rate has remained at low levels. The statistics agency Destatis, today confirmed consumer prices in August were 0.4% higher than in August 2015 but remained unchanged from July 2016. The low inflation rate was due to a 5.9% decrease in energy prices.

Semiconductor maker Infineon (IFNNY) gained 2.17% following the news of further consolidation in the semiconductor industry. Japan's Renesas Electronics today agreed to buy U.S. chipmaker Intersil (ISIL) in a $3.2 billion all-cash deal.