Europe midday: Stocks hold lower as crude futures near key levels

European stocks were holding lower ahead of a raft of US economic data, with a further dip in crude oil futures weighing on sentiment even as traders digested the latest policy surprises from central banks.

As of 1300 BST, the benchmark Stoxx 600 was lower by 0.86% or 3.33 points at 384.25, alongside a drop of 1.13% to 12,661.33 for the German Dax and a 1.08% retreat in the Cac-40 to 5,186.50.

In parallel, front month Brent crude oil futures were drifting lower by 0.17% to $46.92 a barrel following a large drop in the previous session on the back of US government data showing an unexpected build in the country's gasoline inventories. Technical analyst Jose Maria Rodriguez at Web Financial Group continued to point to $46.64 a barrel as the 'make-or-break' level for Brent futures in the very near-term.

As expected, the Swiss National Bank kept all its main policy rates unchanged on Thursday morning.

The Monetary Policy Committee also sprang a surprise for traders, with three of its eight members voting for a 25bp hike in Bank Rate, versus just one in May.

Overnight, the US Federal Reserve stuck to the script, raising its own main policy rate by 25 basis points, albeit while flagging that it is will begin to shrink its balance sheet in 2017. The US interest rate curve flatted appreciably following the decision, nearing its flattest level since 2007.

Data out Stateside revealed the jobs market continued to be in good health, with initial weekly unemployment claims printing at 237,000 (consensus: 242,000).

The Philly Fed's manufacturing index retreated from a reading of 38.8 for May to 27.6 in June (consensus: 24.0).

Still on the economic calendar for Thursday were US industrial production figures for June at 1415 BST, followed by the NAHB's housing market index at 1500 BST.

In parallel, INSEE confirmed that harmonised French consumer prices rose by 0.9% year-on-year in May, which was less than the advance of 1.4% seen in April.

Meanwhile, in Italy the harmonised CPI for May printed at 1.6%, down from 2.0% in the prior month (consensus: 1.5%).

Stock in Deutsche Bank was trading on the frontfoot after Bloomberg reported the lender was reorganising its corporate and investment banking division.

Italy's state railways Ferrovie dello Stato chose Nomura to advise it on a possible flotation on the Milan bourse, Reuters reported.