- German and French inflation data released
- BoE unveils inflation report
- Ukraine talks in motion to resolve crisis
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European stocks were mixed following the release of inflation figures in Germany and France and the Bank of England's inflation report.
German consumer prices on an annual European harmonised basis rose by 1.1% in April following a 0.9% increase a month earlier, in line with expectations.
French inflation increased by 0.8% last month, compared to a 0.7% climb in March, missing estimates of 0.9%.
The data comes a day ahead of a final report on Eurozone inflation which is expected to confirm inflation rose to 0.7% in April, compared to 0.5%. Despite the increase, it remains well below the European Central Bank's (ECB) 2% target, adding pressure on the monetary authority to change policy.
The ECB is next month expected to cut rates and introduce measures to boost lending to small and medium-sized firms to address weak inflation and high unemployment in the Eurozone.
ECB board member Peter Praet confirmed to German newspaper Die Zeit that the central bank was preparing a range of measures, but would not specify exactly what action it would take.
"We could offer more long-term loans to banks, possibly against conditions," he said. "We could cut interest rates once again. A combination of measures is also thinkable.
"Negative interest rates are a possible part of such a combination of measures. In the context of the very low inflation rate in the euro area an appreciation is a problem, because a stronger euro cheapens imports and further depresses the inflation rate."
Elsewhere in the Eurozone, data showed European industrial production fell by 0.1% year-on-year in March following a 1.7% increase the prior month, trailing the 0.9% gain forecast by economists.
BoE in no rush to raise interest rates
The Bank of England (BoE) has reiterated that it was in no rush to raise interest rates despite pressure to address fears in the market over rising house prices as demand outstrips supply.
The BoE said it would keep interest rates unchanged for the time being, leaving it on track to raise rates in around a year's time.
The central bank forecast growth of 3.4% this year, unchanged from February.
However, it expects unemployment will fall faster than previously forecast to 5.9% in two years compared to 6.4% in February's estimate.
Ukraine has agreed to launch discussions to end the crisis and give more powers to the regions as a poll showed that more than half its citizens want to join the European Union (EU) although almost a third favour joining a Moscow-led alliance.
It came alongside news that the Organisation for Security and Cooperation in Europe (OSCE) had brokered a peace plan which received backing from Moscow, although pro-Russian separatists were thought unlikely to attend.
The eastern regions of Donetsk and Luhansk have declared themselves separate from Ukraine after referendums, although while Russia said it "respected" the votes, they have been disregarded as illegal by Kiev, the US and EU.
Teleperformance jumped after the Paris-based call-centre operator said first-quarter revenue grew 3% from a year earlier and confirmed full-year forecasts for comparable-sales growth.
Mediaset SpA slumped after the Italian broadcaster controlled by former Prime Minister Silvio Berlusconi reported a first-quarter loss.
Compass Group advanced after the catering firm said it will return £1bn to investors.
Banco Comercial Portugues retreated following a report that said the lender is planning a capital increase.
Nordex SE gained after the German wind-turbine maker raised its full-year forecasts.
The euro rose 0.09% to $1.3716.
Brent crude futures climbed $0.637 to $109.940.