Europe midday: Stocks little changed after German data

European stocks were little changed as reports showed Germany slid into deflation and unemployment in the nation fell less than expected.

Annual inflation in Germany is estimated to fall in January, according to preliminary figures from five states within Europe’s biggest economy.

An average of estimates from the states suggests that the headline rate fell from 0.1% growth to about a 0.4% decline, below the consensus forecast of a 0.2% decrease.

The official national estimate will be published at 13.00 GMT.

The figures come amid concerns about the risk of deflation in the euro-area. The European Central Bank this month announced a major quantitative easing programme to help move inflation closer to its target of just below 2%.

Bank of England governor Mark Carney warned that the current structure of the Eurozone puts it in an "odd position" and said sharing a currency without also sharing decisions on taxes and spending did not work.

"For complete solutions to current and potential future problems the sharing of fiscal risks is required," he told an audience in Dublin, Ireland.

Elsewhere in the Eurozone, a report showed German unemployment fell 9,000 in January, less than the 10,000 drop that was predicted. The jobless rate fell to 6.5% in January from the prior month's 6.6%, as expected.

Another release revealed the Eurozone economic confidence index fell to 101.2 in January from 100.6 in December, compared to forecasts for a reading of 101.6.

The index for consumer confidence in the euro-area for January remained unchanged at -8.5.

Meanwhile, the newly elected Greek anti-austerity party Syriza clashed with its EU partners, pushing stocks in Athen's lower, Greek sovereign debt yields higher. The country's banks also registered record deposit outflows.

“As funds flow out of Greece the foundations of the Eurozone banking system begin to shake,” analyst David Madden said in an IG mid-morning commentary to clients on Thursday.

The euro rose 0.23% to $1.1313.

Later on the US sees the release of reports on initial jobless claims and pending home sales.

The Federal Reserve last night decided to keep interest rates unchanged at 0.25%, saying it would not raise borrowing costs any earlier than June.

Energy stocks slide

Royal Dutch Shell slumped as it said it will cut spending after reporting worse-than-forecast fourth-quarter profit.

Vallourec SA edged lower after saying it will write down the value of assets by as much as €1.2bn.

Repsol SA dropped after ending its buyback programme.

Oil prices have fallen by almost 60% since June due in part to the boom in US shale production.

Brent crude rose 0.83% to $48.88 per barrel at the midday mark, according to the ICE.

Nokia Oyj slipped after saying that profitability is likely to fall this quarter.

Deutsche Bank AG advanced as Germany’s largest bank swung to a fourth-quarter profit, reflecting a decline in provisions for fines and legal settlements.