18th Apr 2018 11:20
BRUSSELS/FRANKFURT/PARIS (Alliance News) - European stocks gave up some early gains to turn mixed on Wednesday after figures released by Eurostat showed the region's consumer price inflation rose more slowly than first estimated in the 12 months through March, a fresh setback for the European Central Bank as it debates its next steps toward scaling back unprecedented support at some point this year.
Consumer prices in the Eurozone rose 1.3% in March from a year earlier, a tad lower than then initial estimate of 1.4%.
Also, UK inflation hit a one-year low of 2.5% in March from 2.7% in February, according to the latest figures from the Office for National Statistics.
Markets opened on a positive note earlier in the day after US President Donald Trump confirmed that the two Koreas are negotiating an end to hostilities and the People's Bank of China lowered the reserve requirement ratio for most commercial banks in a bid to free up funds for lending and improve liquidity.
In another significant development, China said it would allow full foreign ownership of automakers in five years, ending restrictions that helped to fuel its dispute with Washington.
The pan-European Stoxx Europe 600 index was little changed at 380.46 in late opening deals after rising 0.8% the previous day.
The German DAX also gave up early gains to trade 0.1% lower, while France's CAC 40 index was moving up 0.2% and the UK's FTSE 100 was rising 0.7%.
Dutch semiconductor equipment maker ASML Holding moved lower, erasing initial gains. The company confirmed its 2018 outlook after reporting a rise in first-quarter net income to EUR539.7 million from last year's EUR452.1 million.
Brewer Heineken N.V. tumbled 3% after its first-quarter profit declined to EUR260 million from EUR293 million in the previous year on a reported basis.
Danone shares rallied 2.5%. The French food group confirmed its 2018 guidance after reporting a 5% rise in first-quarter like-for-like sales.
Auto stocks were broadly lower after industry data showed Europe's passenger car sales decreased 5.3% year-on-year to 1.79 million units in March. BMW shed 0.7%, Daimler lost 1.2% and Renault declined 0.6%.
Rio Tinto rallied nearly 3% after reporting a rise in first-quarter iron ore shipments.
CYBG shares plunged over 6%. The owner of Clydesdale Bank said it expects to set aside another GB350 million toward costs related to payment protection insurance.
Property development and investment company Hammerson jumped 2.5%. The company's board has withdrawn its backing for the takeover of smaller UK mall owner Intu.