- Industrial output rises
- Manufacturing output gains
- Chinese inflation grows
- Ukraine and Russia fail to reach deal on gas deliveries
- Merkel warns Cameron over UK-EU threats
FTSE 100: -0.40%
CAC 40: 0.21%
FTSE MIB: 0.31%
IBEX 35: 0.08%
Stoxx 600: 0.19%
European stocks were little changed after reports showed UK manufacturing and industrial production rose more than expected in April.
Industrial output in the UK climbed 3% year-on-year in April following a 2.5% increase in March, exceeding analysts' estimates for a 2.8% gain.
"A robust gain in industrial production in April indicates that it started off the second quarter on the front foot and is well placed to make a healthy contribution to GDP growth," according to Howard Archer, Chief UK and European Economist at IHS Global Insight.
Manufacturing production in the nation jumped 4.4% year-on-year in April after rising 3.5% a month earlier. Economists had pencilled in a 4% rise.
"The fact that manufacturing output has expanded month-on-month for five successive months testifies to the solidity of the sector's upturn," Archer added. "This fuels hopes that the sector can make a sustained contribution to balanced UK growth."
In China, inflation rose by 2.5% in May year-on-year following a 1.8% increase a month earlier. Analysts had predicted a 2.4% gain. However, it remains well below the 3.5% target set out by the Chinese government.
The data comes a day after the People's Bank of China decided to cut the reserve requirement ratio by 50 basis points for some select banks, which will take effect on June 16th.
German Chancellor Angela Merkel has told Prime Minister David Cameron that threats over UK's exit from the European Union are not the way to win an argument.
Cameron said that if his planned in-or-out referendum on Britain's membership of the EU goes ahead in 2017, it would be "unhelpful" if the bloc's 28 leaders don't appoint "people who are capable of taking the EU forward".
"You know, threats are not part and parcel of that spirit, that's not part of the way in which we usually proceed," Merkel said following an overnight meeting hosted by Swedish Prime Minister Fredrik Reinfeldt.
Ukraine and Russia failed to reach an agreement on natural gas deliveries in talks last night hosted by the European Union (EU). Negotiations will resume tonight or tomorrow morning, EU Energy Commissioner Guenther Oettinger said.
Bank of Ireland slides
Bank of Ireland declined after US billionaire Wilbur Ross decide to sell his remaining shares
in the lender.
BT Group slumped on reports that BSkyB is launching a new channel focused on European football.
Imperial Tobacco Group advanced on news the firm plans to sell shares of its Logista unit on the Spanish stock exchange in an initial public offering that values the European logistics business at an estimated $2.5bn.
The euro fell 0.38% to $1.3542.
Brent crude futures rose $0.154 to $110.160 per barrel, according to the ICE.