Europe midday: Shares stay in the red as focus turns to US CPI

European shares were lower on Thursday as investors turned their attention to US CPI data due later in the day.

The pan-regional Stoxx 600 index was down 0.17% to 519.14 points in early deals with major bourses mixed. US inflation is expected to show headline CPI fell to 2.3% on an annualised basis in September, although the key core reading – which excludes volatile items like energy and food - is expected to hold at 3.2%.

"Global markets continued to climb the wall of worry, reversing some sharp declines from earlier in the week as investors returned to the fray," said Richard Hunter, head of markets at Interactive Investor.

"In the US, the Dow Jones and S&P500 notched new record highs, with buying interest in the technology sector offsetting lingering concerns around the Middle East and more domestically the effects of Hurricane Milton."

"The likes of Amazon, Super Micro Computer and Apple rallied, although Alphabet finished down by 1.5% on the news that the Department of Justice is weighing up what would be a landmark ruling to force a breakup of the Google business given its market dominance."

On the economics front, retail sales in Germany rose over the past two months, according to delayed data from the Federal Statistical Office on Thursday.

Sales volumes increased by 1.6% during the month, following a 1.5% gain in July and a 1.1% decline in June, Destatis said. This marked the highest rate since March when sales grew 2.6%.

Destatis released figures for the past three months in one go on Thursday after suspending a number of key economic indicators in May due to a failed data update at the Wiesbaden-based authority.

In European equity news, shares in GSK led the risers after the pharma giant agreed to settle about 93% of cases in its Zantac lawsuits for up to $2.2bn.

Deutsche Telekom said it plans to lift its dividend and buy back shares on the back of better revenue expectations in the next three years.

Reporting by Frank Prenesti for Sharecast.com