Europe close: Weak US, UK GDP weigh on shareson the continent

European stocks ended the day on a mixed note after weak readings on UK and US GDP dragged many indices into the red at the end of the month.

America's economy slowed in the first quarter to an annualised clip of 0.7%, down from 2.1% in the previous quarter and below the 1.2% pace that analysts had expected. In parallel, ONS reported that British GDP growth fell from 0.7% quarter-on-quarter at the end of 2016 to just 0.3% in the first quarter.

On a more positive note, data released the day before showed inflows into euro area stocks were at their strongest since December 2015 over the past week.

The benchmark Stoxx 600 slipped 0.18% to 387.09, while the German Dax dipped 0.05% to 12,438.01 and the Cac-40 lost 0.08% at 5,267.33. Milan's FTSE Mibtel on the other hand gained 0.06% to close at 20,609.16 alongside gains of 0.30% in Madrid's Ibex 35 to 10,715.80.

According to strategists at Bank of America-Merrill Lynch, capital flows into euro area shares this week were at their highest since December 2015.

"2017 total returns for both [global] stocks & bonds impressive in face of Trump disappointment, EU politics, peak PMI narrative…best explanation = $1tn YTD central bank liquidity supernova…bull market unlikely to end until bullish macro makes CB's tighten … not yet there," the strategists said.

Equity inflows hit $3.4bn, double the previous week's result, Jefferies said referencing data from EPFR, with flows to France and Germany running at 21-year highs.

In parallel, euro/dollar is ahead by 0.23% to 1.0897 and the yield on the 10-year German bund by two basis points at 0.32%.

Consumer prices in the euro area accelerated from a 1.5% year-on-year clip in March to 1.9% for April, alongside an increase in 'core' prices from 0.7% to 1.2% (consensus: 1.0%), Eurostat said.

Just the day before, European Central Bank president Mario Draghi said the outlook for only "gradual" price pressures at the core level in the medium-term justifies maintaining a 'dovish' policy stance.

Nevertheless, economists say the implications of today's data are fleeting given, among other things, the likely distortions around Easter.

Also worth noting, the flow of credit to the euro area's private sector accelerated from an annualised pace of 2.6% in February to 3.2% for March, ECB data revealed.

Over that same time span, the three-month moving average for the Eurozone's M3 money supply rose from 4.7% to 4.9%.

Spain's economy grew by 3.0% year-on-year in the first quarter (consensus: 2.9%), reclaiming its pre-crisis levels.

Acting as a backdrop, US president Donald Trump warned that a "major, major" conflict with North Korea was possible although he preferred a diplomatic solution.

Shares in UBS are 2.1% higher despite posting an 80% jump in first quarter earnings thanks to robust profits at its wealth management and investment banking arms.

German's Thyssen Krupp is looking to sell submarines to Indonesia via a joint-venture with a Turkish partner, according to Handelsblatt.

Italy's Atlantia will sell 10% of its motorway unit to a group of investors including Allianz for €1.48bn.

French drugmaker Sanofi posted better-than-expected first quarter profits.

French construction group Vinci's revenues jumped 5.1% over the first three months of the year.