Europe open: Shares flat as investors await eurozone CPI

(Sharecast News) - European shares were slightly lower at the open on Friday as investors awaited eurozone inflation data. The pan-regional Stoxx 600 index was down 0.04% with major bourses mixed on a day with little corporate news on offer and US markets closed overnight for the Thanksgiving holiday.

Eurozone consumer prices are forecast to rise 2.3% in November on an annualised basis this month, compared with 2% in the previous month.

Persistent inflation and the spectre of large tariffs on China by the incoming Trump administration in the US have seen the odds on regular and deeper rate cuts by central banks lengthen.

Meanwhile in Asia, the Nikkei index fell dipped after data showed inflation rose to 2.6% in November from 1.8% the prior month as fresh food prices increased, fuelling speculation that a rate rise could be on the way.

"In the absence of a lead from Wall Street, closed for Thanksgiving and with a shortened day to follow today, Asian markets were mixed as investors turned their attention to local issues," said Interactive Investor head of markets Richard Hunter.

"For the US, the pause is time for reflection on what has been a heady month. The introspection will culminate next week with the release of the non-farm payrolls report which, alongside any early indications of the success of the Black Friday weekend, will guide sentiment."

"The early indications are that 180000 jobs will have been added in November, compared to a somewhat left-field number of just 12000 last month, skewed due to the effects of both the October hurricanes as well as the Boeing strike, leading some to suggest that the underlying figure would otherwise have been nearer to 130000."

In economic news, German retail sales fell more than expected in October, decreasing by 1.5% compared with the previous month, according to official data published on Friday.

The figures compared with a 1% rise in October 2023 and expectations of a 0.3% decline.

In a separate announcement, import prices were 0.8% lower in October 2024 compared with October 2023. Compared with the same month a year earlier, the rate of change was -1.3% in September 2024, and +0.2% in August 2024.

In equity news, Canada's ABC Technologies said it had struck a £1bn deal to buy Britain's TI Fluid Systems for 200p a share in cash.

Reporting by Frank Prenesti for Sharecast.com