Europe open: Stocks drift lower after data showing dip in euro area inflation

Stocks on the Continent are little changed ahead of the release of a barrage of economic data later in the day Stateside, while traders digest the previous night's interest rate decision by the US Federal Reserve.

As of 1011 GMT, the benchmark Stoxx 600 was down by 0.14% or 0.55 points at 381.81, alongside a 0.20% or 24.59 point dip to 12,465.36 for the German Dax and a retreat of 0.27% or 14.66 points in the Cac-490 to 5,329.27.

Meanwhile, out on the euro area periphery, the Ibex 35 was retreating by 0.45% or 46.30 points to 9,853.90, but the FTSE Mibtel was adding 0.02% or 6.20 points to 22,730.66.

Over in FX markets, euro/dollar was slipping 0.15% to 1.2214 while the yield on benchmark 10 year Bund was down by one basis point at 0.67%.

Acting as a backdrop, in testimony before US lawmakers on Tuesday evening, US central bank chief Jerome Powell appeared to leave the door open to a slight acceleration in the pace of rate cuts if economic conditions warranted such a move, according to many economists.

On the economic front, all eyes were on the latest reading on consumer price pressures within the single currency bloc, with the rate of inflation gains slowing from a 1.2% pace year-on-year to 1.1%.

At the 'core' level, CPI was flat at up 1.0% year-on-year.

That followed a weaker than expected reading on German CPI the day before which prompted Michael Hewson at CMC Markets UK to say: "German inflation on the other hand remains stubbornly low, and is declining, despite an unemployment rate at a record low of 5.4%, and a recent wage settlement of over 4% for IG Metall workers."

In parallel, it was reported that the number of jobless in Germany declined by 22,000 in February, close on the heels of a 24,000 person fall in the month before (consensus: 15,000).

Going the other way, GfK's measure of consumer confidence in the Eurozone's largest economy fell back from a reading of 11.0 for February to a print of 10.0 (consensus: 10.8).

For later in the day, investors were waiting on the release of US personal income and spending figures for January at 1330 GMT, followed by the ISM's factory sector purchasing managers' index for February at 1500 GMT.

Hogging the headlines in the corporate space, German chemicals giant Bayer posted adjusted earnings before interest, taxes, depreciation and amortisation of €1.78bn, a shade less than the consensus forecast.

Elsewhere, according to Il Sole 24 Ore Italy's Leonardo was in talks with Qatar to sell the Kingdom 22 Nh90 military helicopters.