European markets retreat from gains on the back of U.S. inflation data and head for mixed open

Holly Ellyatt

European markets are expected to open in mixed territory Thursday, retreating from gains in the previous trading session as traders cheered a cooler-than-expected inflation print in the U.S.

The U.K.’s FTSE 100 index is expected to open 9 points higher at 8,306, Germany’s DAX down 26 points at 20,595, France’s CAC down 15 points at 7,475 and Italy’s FTSE MIB up 8 points at 35,705, according to data from IG.

Trading updates are set to come from Whitbread, Deliveroo and Richemont, while Rio Tinto releases its latest operational review. Data releases include German inflation figures and U.K. monthly gross domestic product.

The mixed open for European stocks comes after global markets rallied on Wednesday after U.S. consumer price inflation came in just below expectations, at 3.2% on a core basis, which excludes food and energy prices. The headline annual reading came in line with the 2.9% forecast in a Dow Jones poll.

U.S. markets soared after the data print but sentiment was also buoyed by a flurry of strong big bank earnings. JPMorgan Chase posted record profit, while Citigroup and Goldman Sachs beat market expectations.

Overnight, Asia-Pacific markets climbed on the back of Wall Street’s rally. U.S. stock futures rose modestly as traders look ahead to more big bank earnings from Morgan Stanley and Bank of America.

More clues on the state of the U.S. economy will be available Thursday, with the December retail sales report expected to show a 0.5% increase, down from a 0.7% rise the previous month, according to a Dow Jones consensus estimate. Weekly jobless claims are also due.

— CNBC’s Sarah Min contributed to this market report

December retail sales data due out Thursday

The December retail sales report due out Thursday is expected to show a 0.5% increase, down from a 0.7% rise the previous month, according to a Dow Jones consensus estimate.

Excluding autos, it’s expected to have risen 0.4% last month, up from a 0.2% gain in the prior reading.

The data is set to release 8:30 a.m. ET.

— Sarah Min

Who’d buy Ubisoft? The top potential suitors

After delaying the launch of its latest Assassin’s Creed game and hiring advisors to review its options, Ubisoft has been shrouded in speculation over whether a potential takeover could be in the works.

The French video game publisher last week pushed back the release date for “Assassin’s Creed Shadows” to March.

It also appointed advisors to review “transformational strategic and capitalistic options to extract the best value for stakeholders.”

Ubisoft said it would “inform the market in accordance with applicable regulations if and once a transaction materializes.”

CNBC spoke to industry analysts about which names they think could emerge as potential buyers of the game maker. 

– Ryan Browne

European markets: Here are the opening calls

European markets are expected to open in mixed territory Thursday.

The U.K.’s FTSE 100 index is expected to open 9 points higher at 8,306, Germany’s DAX down 26 points at 20,595, France’s CAC down 15 points at 7,475 and Italy’s FTSE MIB up 8 points at 35,705, according to data from IG.

Trading updates are set to come from Whitbread, Deliveroo and Richemont, while Rio Tinto releases its latest operational review. Data releases include German inflation figures and U.K. monthly gross domestic product.

— Holly Ellyatt