LONDON — European stocks were mixed on Wednesday as global markets focused on the release of the latest U.S. inflation data.
The pan-European Stoxx 600 provisionally closed 0.02% higher after rising for much of the trading day before falling into negative territory, and then somewhat paring losses. Major regional bourses were mixed, with the U.K.'s FTSE 100 and France's CAC pulling back slightly while Germany's DAX rose.
Industrials and household goods stocks pulled back by 0.4% each, while tech stocks added 1.21%.
Retail stocks rose 1.4%, led by gains for Spanish fashion house Inditex, which closed 4.5% higher after reporting a rebound in sales.
Shares of Rentokil plunged 20%, meanwhile, after the pest control company reported weaker than expected sales in its largest market, North America.
Fresh data showed the U.K. economy continued to flatline in July, falling short of analyst expectations of a 0.2% uptick.
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Traders have their eyes on two key economic reports out of the U.S. this week, with the consumer price index report for August due Wednesday, followed by the producer price index on Thursday.
Money Report
The data comes before a widely anticipated interest rate cut at the Federal Reserve's Sept. 17-18 meeting that could help assuage concerns over a weakening U.S. economy.
Asia-Pacific markets traded lower overnight even as key Wall Street benchmarks rose ahead of the U.S. consumer inflation report.
The U.S. August CPI was released Wednesday and showed that prices increased as expected in the month, rising 0.2%. The annual inflation rate meanwhile came in at 2.5%, easing to a level last recorded in early 2021.
So-called core inflation, which strips out food and energy costs, rose 0.3% on a monthly basis, slightly more than previously expected.
U.S. stocks pulled back, as the fresh CPI data weighed on hopes for a large interest rate cut from the Fed later next week.
