- Eurozone CPI in focus
- US housing starts and jobless claims data due
- US and EU place further sanctions on Russia
FTSE 100: -0.23%
CAC 40: -0.40%
FTSE MIB: -0.72%
IBEX 35: -0.72%
Stoxx 600: -0.34%
European stocks slid ahead of a report on Eurozone inflation and US data on housing and jobs.
Eurostat is expected to confirm the Eurozone consumer price index (CPI) rose 0.8% year-on-year in June, well below the European Central Bank's (ECB) target of just under 2%.
ECB President Mario Draghi has been under pressure to introduce quantitative easing to reduce price instability in the euro-area and to boost the weak recovery.
"By all means, a steady figure is better than another drop in price growth, yet with CPI standing at the lowest level in four-and-a-half years, we are beginning to approach a now or never moment where any further decrease could call for drastic measures," said Joshua Mahony, analyst at Alpari UK.
"Those measures would surely have to come in the form of asset purchases, which remains the one golden card Draghi has yet to play. It does not come without difficulties and as such he would most likely prefer not to resort to such drastic measures."
In the US, a report on housing starts is forecast to show a 1.9% increase in June, following a 6.5% drop a month earlier.
A separate release on initial jobless claims is predicted to come in at 310,000 in the week to July 12th, after 304,000 claims the previous week.
The data comes after Federal Janet Yellen highlighted her concerns over the number of unemployed Americans in her two-day testimony in Washington which she wrapped up yesterday.
Russia hit by further sanctions
The US has imposed sanctions on Russian banks, energy companies and defence firms as part of fresh efforts to curb the crisis in Ukraine.
US President Barack Obama placed more sanctions on Russian companies including Rosneft, OAO Gazprombank and natural gas producer OAO Novatek aimed at squeezing the $2trn economy of Russia, the world's biggest energy exporter.
Brent crude futures rose 0.298% to $107.49 per barrel, according to the ICE.
ITV gains on bid speculation
ITV rallied after British Sky Broadcasting, which is currently considering a giant European consolidation with acquisitions of Sky Italia and Sky Deutschland, sold shares
in UK TV company for £481m. The move puts ITV in play as a takeover target, according to analysts, although Liberty has said it does not intend to make a bid.
GSK declined on reports the company allegedly admitted that it found that staff were bribing Chinese officials and taking kickbacks as far back as 2001.
The euro rose 0.05% to $1.3532.