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European stocks mixed ahead of inflation report; Dax dips 0.02%

Published 01/16/2015, 03:32 AM
© Reuters.  European stocks open mixed as markets eye E.Z. inflation data
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Investing.com - European stocks were mixed on Friday, as expectations for additional easing measures by the European Central Bank continued to support although investors remained cautious ahead of a highly anticipated report on euro zone inflation due later in the day.

During European morning trade, the EURO STOXX 50 rose 0.37%, France’s CAC 40 edged up 0.17%, while Germany’s DAX 30 dipped 0.02%.

European equities strengthened after an interim ruling by the European Court of Justice on Wednesday was seen as clearing the way for the ECB to implement quantitative easing measures at its upcoming meeting on January 22.

Markets were also boosted after the Swiss National Bank on Thursday scrapped the 1.20 per euro exchange rate floor it imposed in September 2011, in a bid to stave off deflation and prevent the continued appreciation of the safe-haven franc.

The move indicated that the SNB sees a high likelihood that the ECB will implement quantitative easing measures at its upcoming meeting next week.

Financial stocks were broadly higher, as French lender Societe Generale (PARIS:SOGN) added 0.15%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) advanced 0.93% and 0.85%.

Among peripheral lenders, Italy's Unicredit and Intesa Sanpaolo climbed 0.67% and 0.97% respectively, while Spanish bank BBVA gained 0.75%.

Elsewhere, Swatch Group (SIX:UHR) saw shares plummet 7.66% and rival Compagnie Financiere Richemont (SIX:CFR) lost 3.94% as the SNB move raised costs for local jewelry makers.

In London, FTSE 100 slid 0.30%, led by Burberry Group (LONDON:BRBY), down 2.02% as the luxury retailer's sales were said to have been hit by the protests in Hong Kong, although the company reported that underlying retail sales still rose over the past three months, partly thanks to demand for a £900 poncho.

Financial stocks added to losses, as Lloyds Banking (LONDON:LLOY) eased 0.09% and the Royal Bank of Scotland (LONDON:RBS) fell 0.37%, while HSBC Holdings (LONDON:HSBA) and Barclays declined 0.57% and 0.67% respectively.

Meanwhile, oil and gas major BP (LONDON:BP) led gains on the commodity-heavy index, with shares rallying 2.50% on the back of rising oil prices.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.12% slip, S&P 500 futures signaled a 0.13% fall, while the Nasdaq 100 futures indicated a 0.37% loss.

Later in the day, the U.S. was to release a report on industrial production and preliminary data on consumer sentiment.

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