Europe midday: Stocks mixed as Eurozone consumer prices and unemployment fall

European stocks were mixed after reports showed Eurozone consumer prices fell more than estimated while the unemployment rate fell unexpectedly.

The EU’s statistics agency said consumer prices fell 0.6% year-on-year, following a 0.2% decline in December amid sluggish oil prices. Analysts had pencilled in a 0.5% drop.

It marked the largest decrease since July 2009 and comes after the European Central Bank (ECB) announced a €60bn a month quantitative easing package to address the risk of deflation. The ECB is trying to move inflation towards its target of just below 2%.

"January’s Eurozone consumer prices figures have brought further evidence that deflationary pressures in the currency union go well beyond the effect of falling energy prices," said Capital Economics chief European economist Jonathan Loynes.

The Eurozone unemployment rate dropped to 11.4% in December from 11.5% the previous month, compared to analysts’ estimates for no change.

The euro rose 0.34% to $1.1359 at the midday mark.

Greece bailout, Russia rate cut

Greek finance minister Yanis Varoufakis has shunned the final €7bn of EU bailout funds, telling the New York Times “we want to sit down and rethink the whole programme”.

The move risks leaving Greece’s banking system exposed as depositors withdraw their cash, according to Prime Minister Alexis Tsipras.

Meanwhile, Russia has unexpectedly cut benchmark interest rates amid concerns over an impending recession. The one-week auction rate was reduced to 15% from 17 %, the central bank said in a statement on its website Friday. Most analysts had predicted no change.

In the US later on, a report on gross domestic product (GDP) is expected to show economic growth slowed in the fourth quarter. Analysts predict GDP rose an annualised 3% compared to a 5% gain the previous quarter.

The US will also see the release of the University of Michigan’s consumer confidence index and personal consumption data in afternoon trade.

BT, IAG

BT Group declined after reporting third-quarter earnings in line with analysts’ estimates.

International Consolidated Airlines was subdued after Qatar Airways bought a 9.99% stake in the British Airways owner.

Salvatore Ferragamo SpA rallied after reporting 2014 sales growth excluding currency swings that beat analysts’ estimates.

Lagardere SCA slumped following reports the French media group is negotiating with private-equity firms to fund a $1.2bn deal with World Duty Free SpA.

Brent crude increased 0.16% to $49.21 per barrel at noon, according to the ICE.