- Eurostat confirms fall in Eurozone CPI
- ECB releases monthly report
- US inflation and jobs reports out later
- Bernanke due to speak in Washington
FTSE 100: 0.04%
CAC 40: -0.17%
FTSE MIB: -0.31%
IBEX 35: -0.21%
Stoxx 600: -0.13%
European equities were mixed after Eurostat confirmed a fall in inflation in December.
The statistics agency said the consumer price index (CPI) for the Eurozone last month rose by 0.8%, down from November's 0.9% increase.
The core inflation rate, which excludes food, energy, alcohol and tobacco prices, slowed to a 0.7% year-on-year pace, comfortably below the previous month's 1.0% clip.
The fall in inflation did little to spur the European Central Bank to change its monetary policy last week, with President Mario Draghi blaming an adjustment by the German statistics office for the decrease.
A separate report from the federal statistics office in Germany this morning showed inflation in Europe's biggest economy rose slightly in December, in line with forecasts, by 0.4% on the month, pushing up the annual inflation rate to 1.4% from 1.3% in November.
Capital Economics said the European economy looks set for another year of weak growth in 2014, with the Eurozone "likely to do little more than stagnate".
"Against that background, the ECB is likely to take further policy action, perhaps including the belated adoption of quantitative easing, in an attempt to support the region's fragile recovery and head off deflation risks."
The ECB released its monthly report this morning which said risks surrounding the economic outlook for the euro-area continue to be on the downside.
The report warned that developments in global money and financial market conditions and related uncertainties may have the potential to negatively affect economic conditions.
"Other downside risks include higher commodity prices, weaker than expected domestic demand and export growth, and slow or insufficient implementation of structural reforms in euro area countries."
US inflation and jobs reports
US CPI is tipped to show an increase of 1.5% last month, compared to last month's 1.2% jump.
The US Labor Department will also unveil the latest figures for jobless benefits. Economists predict jobless benefits in the US fell to 328,000 in the week ended January 11th, the least since November.
The Federal Reserve is watching economic data closely ahead of its next policy announcement at the end of this month. The central bank began unwinding monthly bond purchases by $10bn to $75bn in December and said it would gradually introduce further tapering provided the economy showed continued improvement.
Outgoing Fed Chairman Ben Bernanke will speak in Washington this afternoon which could offer some insight into the central bank's next move. Fed official John Williams will also speak in Washington.
United Utilities, Aberdeen
United Utilities gained Morgan Stanley raised its rating on the UK water supplier to 'overweight' from 'equal weight'.
Aberdeen Asset Management slipped after the money manager reported a fall in assets under management and gross inflows in the fourth quarter, reflecting weak investor sentiment.
Ladbrokes edged higher after the UK betting firm said 2013 operating profit will be in the middle of analysts' estimated range of £129.8m to £151m.
Rio Tinto advanced after saying it exceeded its 2013 cost cutting targets and reported record iron ore production and shipments in the fourth quarter.
Cie. Financiere Richemont declined after reporting a rise in third-quarter sales that missed projections.
Carrefour retreated after the French retailer posted a fall in fourth quarter revenue.
The euro rose 0.03% to $1.3609.
Brent crude dropped $0.159 to $106.960 per barrel, according to data from the ICE.