European Shares Mixed In Cautious Trade Ahead Of ECB Rate Decision

(RTTNews) - European stocks were mixed in cautious trade on Thursday, after having reached over one-month lows on Wednesday amid concerns about rising Middle East tensions and hawkish rate bets.

Brent crude futures held steady above $100 a barrel after renewed tanker attacks deepened supply fears.

U.S. Treasury yields held steady after surging on Wednesday as the U.S. Treasury lifted the size of a long-dated buyback operation, which investors deemed insufficient.

In economic releases, Germany's consumer price inflation accelerated to a four-month high in August, in line with the initial estimate, driven by higher energy prices, Destatis reported earlier today.

Consumer prices rose 2.9 percent year-on-year in August after a 2.8 percent gain in July. A similar higher rate was last seen in April.

The EU harmonized inflation also rose to a four-month high of 2.9 percent from 2.8 percent in the previous month, as estimated.

The European Central Bank (ECB) is widely expected to raise key interest rates later today after pausing in July. ECB President Lagarde's comments and updated economic forecasts will be in the spotlight.

The U.S. dollar index was a tad lower ahead of PPI data due later in the day.

The pan-European STOXX 600 was marginally lower at 640.26 after tumbling 1.4 percent on Wednesday.

The German DAX edged down marginally and the U.K.'s FTSE 100 dropped 0.2 percent, while France's CAC 40 rose 0.3 percent.

In corporate news, German sports car manufacturer Porsche rose over 1 percent after completing the sale of its stakes in Bugatti Rimac and Rimac Group.

British electricals retailer Currys fell 1.3 percent. The company backed its annul view after reporting a 7 percent rise in like-for-like sales for the 17 weeks to August 29.