European Bourses Ease As Inflation Drop Ignites Worries of Deflation


European stocks fell after inflation dropped in January, sparking worries of deflation.

Inflation in the euro zone dropped to 0.7% in January from 0.8% in December, falling short of estimates and hitting the lowest level since October. Economists expected a 0.9% rise.

Euro-area unemployment held at 12% in December, slightly better than expectations for 12.1%. November was revised to 12%, down from a record 12.1% in September.

Spain's European Union-harmonized consumer price index rose 0.3% on the year, the same as in December.

The monthly UK consumer confidence index from research firm GfK rose to -7 in January from -13 in December. That was the highest level since September 2007 and more than reversed the single-point declines reported in the index in recent months.

In ADR news, Diageo Plc ( DEO ) is downgraded to neutral from buy at Goldman Sachs, citing continued challenges to growth in emerging markets.

BT Group ( BT ) reported Q3 adjusted earnings before interest, taxes, depreciation and amortization of 1.54 billion pounds ($2.54 billion). The average prediction of analysts surveyed by Bloomberg was for 1.5 billion pounds.

Deutsche Bank ( DB ) is cut to equal weight from overweight at Barclays.

Novo Nordisk ( NVO ) is raised to buy from neutral at Swedbank AB, citing a number of phase-three treatment studies that will help it expand its product offering in the next six to 18 months.

The FTSE-100 was last down 0.43% at 6,510.44, the DAX down 0.71% at 9,306.48 and the CAC-40 down 0.34% at 4,165.72.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: BT , DB , DEO , NVO

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