European markets open mixed as inflation worries persist; H&M plunges 14%

Karen Gilchrist@_KARENGILCHRIST & Holly Ellyatt@HOLLYELLYATT

LONDON — European stocks opened mixed Thursday as global inflation worries continue to rattle markets.

The pan-European Stoxx 600 rose 0.03% in early deals, with sectors and major bourses trading in opposite directions. Insurance stocks added 0.3%, while retail shed 2.7%

H&M plunged 14% after it reported a smaller-than-expected rise in second-quarter profits.

Global market attention is shifting toward fresh U.S. inflation data on Friday, with May’s personal consumption expenditures price index, the U.S. Federal Reserve’s preferred inflation gauge, due to be released. Investors hope the report will show easing pricing pressures that could cement the likelihood the Fed will lower interest rates later this year.

Asia-Pacific markets traded lower overnight as the Japanese yen weakened to a near 38-year low late Wednesday, hitting 160.82 against the U.S. dollar, according to FactSet data. Meanwhile, U.S. S&P 500 futures fell slightly Wednesday night after the S&P 500 rose for a second day.

Data releases in Europe Thursday include Italy’s latest consumer and business confidence numbers, and Spanish retail sales. An EU leader’ summit begins in Brussels on Thursday and the Bank of England publishes its latest Financial Stability Report.

Source : cnbc