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European stocks remain lower after inflation data; Dax down 0.13%

Published 01/16/2014, 07:16 AM

Investing.com - European stocks remained mostly lower on Thursday, after the release of euro zone inflation data, as Wednesday's upbeat U.S. economic reports continued to support.

During European afternoon trade, the EURO STOXX 50 fell 0.20%, France’s CAC 40 shed 0.21%, while Germany’s DAX 30 slipped 0.13%.

Data showed that consumer price inflation in the euro zone rose 0.8% last month, unchanged from an initial estimate and in line with expectations. Euro zone inflation rose by 0.9% in November. The rate remains firmly below the European Central Bank's target of near but just below 2%.

Separately, European Central Bank governing council member Jens Weidmann played down fears over the threat of deflation in the currency bloc. "In the current economic situation, the risk is of a broad deflation in the euro zone is limited," he said.

Weidmann, who is the head of Germany’s Bundesbank, said he saw the upswing in the German economy continuing into this year and the next. The remarks came during a speech in Berlin.

Financial stocks remained broadly lower, as French lenders BNP Paribas and Societe Generale tumbled 0.97% and 1.34%, while Germany's Deutsche Bank slipped 0.15%.

Among peripheral lenders, Spanish banks Banco Santander and BBVA fell 0.29% and 0.38% respectively, while Italy's Unicredit and Intesa Sanpaolo both dropped 0.65%.

Elsewhere, Carrefour plummeted 2.93% after the Paris-based retailer said total French sales, excluding petrol, rose 2.2% in the fourth quarter.

Airbus Group gained 0.44%, erasing earlier losses, following reports France is selling a EUR455 million stake in the aircraft maker to institutional investors.

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In London, commodity-heavy FTSE 100 eased up 0.07%, supported by sharp gains in the mining sector.

Shares in Rio Tinto and BHP Billiton rallied 3.32% and 3.74% respectively, while Fresnillo and Antofagasta surged 3.92% and 4.11%.

Rio Tinto earlier said that it cut cash costs by more than USD2 billion and halved exploration spending across the range of commodities to USD948 million last year, beating the targets set by Chief Executive Officer Sam Walsh.

Meanwhile, financial stocks remained mostly lower. Barclays shed 0.29% and Lloyds Banking tumbled 1.58%, while the Royal Bank of Scotland lost 1.03%. HSBC Holdings overperformed however, up 0.14%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.06% dip, S&P 500 futures signaled a 0.07% loss, while the Nasdaq 100 futures indicated a 0.06% gain.

Later in the day, the U.S. was to publish reports on consumer price inflation and initial jobless claims, in addition to data on manufacturing activity in Philadelphia.

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