European stocks mixed ahead of the U.S. inflation data

European stock markets were in turmoil ahead of U.S. inflation data.

• Benchmark Stoxx 600 index advanced by 0.22%
• Retail stocks continued Thursday’s climb, increasing by 0.73%
• Food and beverage stocks rose by 0.72%

Banks, however, retreated 0.4%, with Swedbank, one of the lowest-performing European stocks, down 5.12%.

The Federal Reserve monitors the U.S. Consumer Price Index, and the key indicator will be watched by investors looking for direction on interest rates after recent market volatility.

This morning’s statistics showed a retreat in German retail sales, while the United Kingdom economy advanced by 0.13% in the fourth quarter of 2022.

According to Germany’s preliminary analysis, inflation is 7.9%, lower than the previous month.

European Central Bank policymakers said this week that raising interest rates is important but may come at a slower pace. In March, the ECB advanced by 50 basis points.

The Stoxx 600 index had another successful session on Thursday, closing 1.2% higher, with banks advancing 1.6% as investors still await the results of recent swings.

The economy shrank by 0.12% in the third quarter, and the Bank of England predicted the U.K. would enter a prolonged, mild recession that would last into 2024. However, the Chancellor of the Exchequer does not believe that the U.K. will go into recession at the start of this month.

U.K. economist at Pantheon Macroeconomics noted that U.K. quarterly GDP is 0.62% lower than before the pandemic, 5.12% higher in the U.S., 1.31% in France, and 1.92% in Italy.

Asia-Pacific markets climb

Asia-Pacific markets advanced further as technology stocks continued to enjoy renewed interest and made some gains on Wall Street.

Investors also watched the U.S. Consumer Price Index.

In Japan, the Nikkei 225 increased 0.94%, reaching 28,041.49, and the Topix rose 1.03%, totaling 2,003.6, in light of the Tokyo inflation rate’s stagnant decrease since December at 4.4%.

South Korea’s Kospi advanced 0.97% to end the session at 2,476.87, while the Kosdaq retreated 0.36%.

The Hang Seng index in Hong Kong lost some of its earlier momenta and came to a close of 0.65% up after the hour of trading ended. The Hang Seng Tech index experienced an increase of 0.92%.