European Shares Muted Ahead Of US Inflation Data

(RTTNews) - European stocks edged lower on Friday as investors monitored developments around the Red Sea and awaited the release of U.S. core personal consumption price index - the Fed's preferred inflation metric- later in the day for directional cues.

The British pound strengthened against other major currencies after data showed U.K. retail sales rose more-than-expected in November.

Data from the Office for National Statistics showed that British retail sales advanced 1.3 percent month-on-month in November following a revised nil growth in October.

Separate data showed the U.K. economy contracted in the third quarter due to the fall in the service sector.

Gross domestic product shrank 0.1 percent sequentially in the third quarter, which was revised down from the flat growth estimated initially.

Meanwhile, the U.K. current account deficit narrowed to GBP 17.18 billion in the third quarter from GBP 23.96 billion in the second quarter.

The pan European STOXX 600 was marginally lower at 476.72 after declining 0.2 percent on Thursday.

The German DAX and France's CAC 40 were also seeing marginal declines while the U.K.'s FTSE 100 traded with a positive bias.

Adidas slumped 5.3 percent and Puma lost 4.8 percent after U.S. peer Nike lowered its revenue outlook and unveiled plans to cut $2 billion (€1.8 billion) in costs over the next three years.

Shipping giant Hapag-Lloyd rose slightly after saying that it would reroute 25 ships by the end of the year to avoid the Suez Canal and the Red Sea.

Klockner & Co, a German steel and metal distributing company, advanced 1.5 percent after it announced plans to sell parts of its European commodity distribution business.

EnQuest soared 8 percent. The independent energy company has agreed to sell 15 percent interest each in the Bressay field and the EnQuest Producer floating production, storage and offloading vessel (FPSO), both located in the UK North Sea to RockRose UKCS 10 Ltd, a unit of Viaro Energy.

Air France-KLM fell about 1 percent. The airline said it will consider whether to appeal against a European court annulment of European Union approvals of France's state-aid measures during the Covid-19 pandemic.

Vinci rose about 1 percent. The engineering and construction company announced that its subsidiary Seymour Whyte has received a contract to improve Cressbrook Dam, in the Toowoomba region, around 100 km from Brisbane.