European stocks diverge on mixed data

European stock markets diverged on Wednesday with traders reacting to mixed regional data ahead of key US jobs numbers due later in the week.

Around 1030 GMT, London's benchmark FTSE 100 index was 0.3 percent lower. 

In the eurozone, Frankfurt's DAX 30 lost 0.2 percent and the Paris CAC 40 gained 0.5 percent compared with the close on Tuesday.

"Both German retail sales and employment data came in better than expected, however their impact on the markets should be only temporary as they will neither herald a change in direction by the ECB nor indicate a major acceleration in economic activity," said Markus Huber, a trader at City of London Markets.

Eurozone inflation and jobless levels have fallen short of analyst forecasts, official data showed Wednesday, amid speculation that the European Central Bank will have to adopt more stimulus measures.

The official EU statistics agency Eurostat said eurozone consumer prices rose 0.2 percent in August, the same rate as in July.

Eurozone unemployment meanwhile was unchanged at 10.1 percent in July.

In foreign exchange Wednesday, the euro dipped against the dollar, which however fell versus the British pound.

Analysts pointed to data showing a recovery in British consumer confidence following a post-Brexit vote slump as handing a boost to sterling.

"After recording its largest monthly fall in 26 years in July, the GfK/NOP composite index of consumer confidence picked up from minus 12 to minus 7 in August," noted Ruth Gregory, economist at Capital Economics research group.

British Prime Minister Theresa May on Wednesday summoned her senior ministers for their first talks on exiting the European Union since the summer break amid reports of major divisions over how to proceed over Brexit.

- US jobs eyed -

Despite the pound's rise Wednesday, demand for the dollar has intensified since Federal Reserve boss Janet Yellen on Friday hinted at a possible hike -- as data indicate continued economic improvement in the world's biggest economy.

Figures showing US consumer confidence at its highest level in almost a year provided further evidence of a brighter outlook.

Focus is now on Friday's US jobs creation report, which could be pivotal in the Fed's decision-making ahead of next month's policy meeting.

Tokyo stocks meanwhile rallied Wednesday as the yen fell further against the dollar on US interest rate talk -- but most other Asian markets struggled.

Adding to yen weakness was another poor indicator on Japan's factory output, which fuelled expectations the nation's central bank will widen its monetary easing programme to kickstart the economy.

The softness in the yen once again helped Japan's exporters and the Nikkei ended one percent higher, while Shanghai also edged up.

- Key figures around 1030 GMT -

London - FTSE 100: DOWN 0.3 percent at 6,803.79 points

Frankfurt - DAX 30: DOWN 0.2 percent at 10,636.13

Paris - CAC 40: UP 0.5 percent at 4,480.39

EURO STOXX 50: UP 0.4 percent at 3,043.3

Tokyo - Nikkei 225: UP 1.0 percent at 16,887.40 (close)

Shanghai - Composite: UP 0.4 percent at 3,085.49 (close)

Hong Kong - Hang Seng: DOWN 0.2 percent at 22,976.88 (close)

New York - DOW: DOWN 0.3 percent at 18,454.30 (close)

Euro/dollar: DOWN at $1.1142 from $1.1146 late on Tuesday

Dollar/yen: UP at 103.25 yen from 103.02 yen

Pound/dollar: UP at $1.3139 from $1.3076

Source: AFP