Europe open: Stocks waver as investors await inflation figures; Commerzbank rallies

European stocks wavered in early trade as investors digested better-than-expected German data ahead of key eurozone inflation figures.

At 0900 BST, the benchmark Stoxx Europe 600 index was up 0.2%, Germany’s DAX was 0.1% weaker and France’s CAC 40 was 0.3% firmer.

At the same time, oil prices were in the red. West Texas Intermediate was down 0.4% to $46.17 a barrel while Brent crude was 0.5% lower at $48/14.

Ana Thaker, market economist at PhillipCapital UK, said: “Today’s eurozone CPI figures will be crucial in determining ECB policy in their September meeting. If CPI looks weak, we could see Draghi act swiftly to inject more stimulus into the markets in a bid to increase price levels and spur on growth. The eurozone has faced a spate of poor data recently and there will be pressure on the ECB to take measures to support the economy.”

The flash eurozone inflation data is due at 1000 BST, along with the unemployment rate for the bloc.

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 1.5%.

In corporate news, Commerzbank racked up healthy gains after Germany’s Manager Magazin reported that Deutsche Bank had in the past looked at the possibility of a merger with the company.

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 calendar, figures from Destatis showed German retail sales rose 1.7% in July from June, beating expectations of a 0.5% increase.

On the year, however, retail sales fell 1.5% in real terms, missing expectations of a 0.3% jump.