European markets were mixed on Monday morning, as investors digest a surprisingly low Chinese inflation reading and look ahead to key U.S. data and corporate earnings later in the week.
The pan-European Stoxx 600 hovered fractionally above the flatline by mid-morning, having recouped opening losses of around 0.3%. Oil and gas stocks added 0.8% while basic resources dropped 0.9%.
The European blue-chip index closed out its worst week for almost four months on Friday as hawkish tones from central bankers and resilient U.S. economic data deepened concerns that interest rates will stay higher for longer.
Chinese annual producer prices fell for a ninth consecutive month in June as consumer prices remained unchanged, official data showed Monday, highlighting the challenges faced by the world’s second-largest economy in reviving demand and jump-starting economic growth.
Shares in Asia-Pacific were mixed on Monday as caution prevailed, while investors will also be awaiting key inflation reports this week, including the U.S. consumer price index report due Wednesday and the producer price index on Thursday.