European Stocks Edge Lower; US Inflation, UK Retail Sector in Focus By Investing.com – Investing.com

European Stocks Edge Lower; US Inflation, UK Retail Sector in Focus By Investing.com – Investing.com

© Reuters.

By Peter Nurse 

Investing.com - European stock markets weakened Thursday, with investors digesting the latest red-hot U.S. inflation release while festive trading statements placed the spotlight on the U.K. retail sector.

At 4 AM ET (0900 GMT), the in Germany traded 0.2% lower, the in France dropped 0.6% and the U.K.’s fell 0.2%.

Global markets are still studying the release of the December U.S. , which posted the biggest annual increase since 1982. This release cemented expectations for repeated interest rate hikes in the coming 12 months, and followed Federal Reserve Chairman Jerome Powell pledging to curb inflation without derailing the economic recovery in his renomination testimony on Capitol Hill earlier this week.

Back in Europe, there are a number of ECB policy makers due to speak later Thursday, but this central bank is not seen as being close to raising interest rates due to the Eurozone's different labor market conditions and the greater fragility of recoveries in countries such as Italy.

In corporate news, the U.K. retail sector is in focus Thursday after a number of important players released trading statements that took in the important festive period. 

Marks & Spencer (OTC:) stock