European Shares Drift Lower In Cautious Trade

(RTTNews) - European stocks edged lower on Friday, after having risen notably in the previous session on the back of declining oil prices and reduced pressure in the bond market.

A cautious undertone prevailed after a European Central Bank survey showed Euro Zone consumers nudged up their inflation expectations last month. Median expectations for inflation over the next 12 months increased to 3.0 percent from 2.9 percent in July.

Earlier today, the Bank of Japan raised its key interest rate by 25 basis points and warned that underlying inflation could exceed its 2 percent target amid rising wage and price expectations.

The pan-European STOXX 600 dipped 0.4 percent to 640.11 after gaining 0.9 percent on Thursday.

The German DAX fell 0.6 percent, France's CAC 40 shed 0.7 percent and the U.K.'s FTSE 100 was down 0.6 percent.

The British pound traded higher after official data showed U.K. retail sales rebounded unexpectedly in August, largely driven by the recovery in non-store retailing.

Retail sales grew 0.5 percent on a monthly basis, offsetting July's 0.5 percent fall. Sales were expected to drop 0.2 percent. On a yearly basis, retail sales growth doubled to 2.4 percent from 1.2 percent in July.

In corporate news, Nestle shares dropped nearly 2 percent. The Swiss food and beverage company said it is 'assessing options' after a Russian presidential decree placed its local subsidiary, Nestle Russia, under temporary external administration.

German travel group TUI fell over 1 percent after an announcement that Johan Lundgren will become Chairman of its Supervisory Board after the AGM in February 2027.

French pipe manufacturer Vallourec gained about 1 percent after securing a contract for a key South European offshore carbon storage project.