Europe close: Stocks mixed amid poor economic data

European stocks were mixed on Wednesday as investors digested some uninspiring eurozone inflation and unemployment data, ahead of Friday´s key US jobs report and weighed down by a fall oil prices.

The benchmark Stoxx Europe 600 index closed , Germany’s DAX was 0.61% weaker and France’s CAC 40 was down 0.43%. Milan´s FTSE Mibtel on the other hand gained 0.31%.

Oil prices were in a funk following a second consecutive week of increasing stockpiles in the States. West Texas Intermediate was down 3.7% to $44.71 a barrel while Brent crude was 2.8% lower at $47.04.

In terms of sectors, miners were under pressure after analysts at Clarksons Platou Securities said iron ore prices could drop below $50 a metric ton before the year-end. The Stoxx 600 basic resources index fell 2.7%.

In corporate news, Commerzbank and Deutsche Bank racked up healthy gains after Germany’s Manager Magazin reported that DB had in the past looked at the possibility of a merger with Commerzbank. However, Deutsche’s chief executive later dismissed the idea.

Nevertheless, the Stoxx 600 gauge of bank stocks gained 1.79%.

Iliad was on the front foot as the French phone carrier posted a rise in first-half sales and earnings.

French telecommunications company Bouygues was also in the black as it said net profit in the second quarter increased and stuck to its full-year revenue and earnings targets.

888 Holdings rallied as favourable sports results and strong casino winnings lifted its first-half numbers, helping to make up for its failed plot to buy William Hill.

Diploma edged higher as it said underlying sales grew 2% in the year to September, with acquisitions and the weak pound helping to lift statutory revenues 14%.

FTSE 250 builders merchant Grafton Group tumbled as it reported a rise in first-half pre-tax profit as revenue grew thanks in part to strong performances in the Netherlands and Ireland, but warned of a challenging backdrop in UK merchanting.

On the macroeconomic front, data from Eurostat showed the eurozone unemployment rate was unchanged in July.

The unemployment rate came in at 10.1%, steady compared to June and down from 10.8% in July last year. It fell short of analysts’ expectations for a nudge down to 10%.

Meanwhile, inflation in the block came in lower than expected for August, according to a flash estimate by Eurostat, which could prompt the European Central Bank into action.

Year-over-year consumer price inflation was stable compared with July at 0.2%, which was below economists’ expectations of 0.3%, as prices of food, industrial goods and services rose less than the previous month.

Core inflation – which strips out energy – was down to 0.8% from 0.9%, below estimates for it to remain unchanged.