European Shares Struggle For Direction Before US Inflation Data

European stocks were muted in lackluster trade on Thursday ahead of central bank decisions from the European Central Bank and the Bank of England.

Traders also await key U.S.CPI data later in the day, followed by the Personal Consumption Expenditures price index on Friday, for additional clues on the Fed’s rate trajectory in the new year.

Meanwhile, the confidence among French manufacturers rebounded strongly in December to the highest level in over one-and-a-half years, monthly data from the statistical office INSEE revealed.

The manufacturing sentiment index rose to 102.0 in December from 98.0 in November. Economists had expected the index to remain stable at 98.0.

The pan-European Stoxx 600 was marginally higher at 579.98 after ending little changed with a negative bias on Wednesday.

The German DAX was little changed and France’s CAC 40 edged up by 0.1 percent while the U.K.’s FTSE 100 traded with a negative bias after rising sharply in the previous session on weaker-than-expected inflation data.

Swiss engineering group ABB edged down slightly after it agreed to acquire IPEC, a U.K.-based technology company with more than 30 years of experience in electrical diagnostics.

Perfume retailer Douglas slumped 7.6 percent after saying it has experienced heightened price sensitivity among customers as well as growing competitive pressure from discount campaigns in the 2024-25 fiscal year.

Electronics retailer Currys jumped 8 percent after more than doubling its first half adjusted profit before tax.