European markets lower with euro zone inflation data ahead

Jenni Reid & Holly Ellyatt

European stock markets fell early Thursday, with investors focused on the release of preliminary euro zone inflation data for February.

The pan-European Stoxx 600 index was down 0.6% before trimming losses to 0.1% by 9:00 a.m. London time, with most sectors posting declines. Travel stocks fell 1.7% while tech was down 1.2% and construction stocks managed a 0.5% gain.

European markets

TICKER	COMPANY	PRICE	CHANGE	%CHANGE
.FTSE	FTSE 100	7891.09	-23.84	-0.3
.GDAXI	DAX	15231.51	-73.51	-0.48
.FCHI	CAC 40 Index	7203.23	-31.02	-0.43
.FTMIB	FTSE MIB	27224.84	-90.24	-0.33
.IBEX	IBEX 35 Idx	9285.1	-37.8	-0.41

Regional markets closed lower Wednesday, with economic data released this week giving investors pause for thought. On Tuesday, data showed inflation in France and Spain accelerated unexpectedly in February.

A German flash estimate put the inflation rate harmonized with the rest of the EU at 9.3% in February, which would be an increase from 9.2% in January.

Asia-Pacific stock markets were mostly lower, with concerns over further Federal Reserve rate hikes back in focus following Wednesday’s boost from strong a Chinese manufacturing Purchasing managers’ index reading.

Europe markets open lower

Europe’s Stoxx 600 index dropped 0.62% in early trade as investors braced themselves for the release of euro zone inflation data at 10:00 a.m. London time.

It follows inflation figures from France, Spain and Germany all coming in hotter than expected for February and showing increases on the previous month.

Germany’s DAX was down 0.8%, France’s CAC 40 down 0.7% and the U.K.’s FTSE 100 down 0.25%.

— Jenni Reid

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German inflation higher than expected in February

German inflation is expected to have risen to 8.7% in February, according to the German Federal Statistics Office.

The rate would sit 0.8% higher than in January, according to the preliminary data.

February’s EU-harmonized rate for consumer prices increased to 9.3% year-on-year, above the 9% forecast by economists polled by Reuters. Harmonized inflation was at 9.2% in January.

The rate remains well above the European Central Bank’s 2% target and follows the hotter-than-expected February inflation figures from France and Spain.

“It seems to be the case that inflation is very stubborn, so it looks like that inflation will remain on a very high level,” Joachim Nagel, President of Deutsche Bundesbank told CNBC’s Annette Weisbach Wednesday.

The pan-European Stoxx 600 index eased slightly on the announcement, but was flat by 1.30 p.m. London time.

— Hannah Ward-Glenton

European markets: Here are the opening calls

European markets are heading for a slightly higher open Thursday as investors reflect on the latest economic data from the region.

The U.K.’s FTSE 100 index is expected to open 14 points higher at 7,907, Germany’s DAX 3 points higher at 15,290, France’s CAC up 5 points at 7,232 and Italy’s FTSE MIB up 16 points at 27,355, according to data from IG.

Earnings are set to come from London Stock Exchange, Metro Bank, Taylor WImpey and Anheuser-Busch InBev and data releases are focused on flash inflation figures for the euro zone for February.

— Holly Ellyatt

Source : cnbc