European stocks lower as earnings dampen relief rally following soft U.S. inflation data
Istanbul, May 16 (Hibya) - The pan-European Stoxx 600 index was down 0.05 percent by 9:00 a.m. London time, with sectors trading in mixed territory. Autos and oil and gas stocks lost 1.2 percent, while mining stocks added 0.4 percent.
Insurance stocks gained 1.4 percent following strong earnings from Swiss insurers. Swiss Re shares gained 3.9 percent, while Zurich Insurance shares added 2.3 percent.
Shares of EasyJet, meanwhile, fell 7.2 percent before paring losses slightly after the low-cost airline posted a somewhat larger than expected pre-tax loss of £350 million ($443 million) for the first half of the year. Travel and leisure stocks were dragged lower, losing 0.3 percent.
The U.S. consumer price index rose 0.3 percent in April, a figure that fell slightly below the 0.4 percent rise predicted by the Dow Jones. This data, released on Wednesday, is significant as it shows that consumer prices have grown 3.4 percent from a year ago, in line with market estimates.
However, the slightly lower-than-expected rise has led traders to believe that the U.S. Federal Reserve could begin to cut rates shortly, which could significantly impact market expectations.
Asia-Pacific markets rose Thursday after Wall Street benchmarks closed at record highs overnight following the inflation data. U.S. stock futures were near flat overnight.
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