- ECB policy meeting in focus
- Eurozone retail sales to be released
- Services data out in euro-area, UK and US

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European stocks were mixed ahead of the European Central Bank's (ECB) policy meeting today.

The ECB is under mounting pressure to tackle falling inflation and high unemployment, but most analyst predict the monetary authority will keep interest rates at 0.25% and hold back stimulus measures.

Data this week revealed unemployment remained at 11.9% in February while inflation fell to 0.5% in March from 0.8% in February, well below the ECB's 2% target.

It fuelled concerns that the euro-area was headed towards deflation and a stagnant recovery.

However, ECB Vice President Vitor Constancio said earlier this week that the Eurozone will probably avoid outright deflation as economic recovery gradually reduces spare capacity in the economy.

In contrast, Barclays said: "We still think that the risks of deflation are higher than ECB rhetoric implies and monetary policy looks increasingly too tight. However, not having acted already suggests that the ECB might be reluctant to act while the economic outlook is gradually improving."

Along side today's ECB policy decision will be the release of service activity data in the UK, Eurozone and the US.

Another report on Eurozone retail sales in February may show a 0.8% year-on-year increase following a 1.3% rise a month earlier, according to forecasts.

US data on initial jobless claims and trade balance are also out later.

Nokian Renkaat

Nokian Renkaat Oyj declined after lowering its 2014 profit and sales forecasts due to weak Russian demand amid the turmoil surrounding Moscow's takeover of Crimea from Ukraine.

BTG gained after the biotechnology firm said annual sales will be near the top of its forecast range of £275m to £285m.

Deutsche Bank dropped as JPMorgan Chase & Co. downgraded Germany's largest lender to 'neutral' from 'overweight' on capital concerns.

Quindell jumped after insurance broker Swinton Group extended its contract with the provider of outsourcing services to March 2015.

The euro rose 0.01% to $1.3768.

Brent crude futures fell $0.086 to $104.700 per barrel, according to the ICE.

RD

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