Europe midday: Stocks mixed as investors digest earnings, inflation data

European stocks were mixed on Wednesday as investors digested earnings from Pearson, ASML and Burberry and eurozone inflation data.

At midday, the benchmark Stoxx Europe 600 index was down 0.22% to 361.61, Germany’s DAX was up 0.05% to 11,545.53 and France’s CAC 40 was 0.47% lower to 4,837.03.

Meanwhile, oil prices pushed lower, with West Texas Intermediate falling 1.46% to $51.72 a barrel and Brent crude 1.29% weaker at $54.76.

Mike van Dulken, head of research at Accendo Markets, said: “Equities are skulking around breakeven, having retreated from this morning's best levels and still deciding where to go next. The FTSE 100 has given up early gains despite sterling continuing to pull back from yesterday's strong rally, the index hindered by a Pearson profits warning and weakness among miners and financials overpowering fresh strength among defensives.

“The DAX sees a mix of weak financials and manufacturers in a tug-o'-war with gains for utilities, healthcare and defensives."

Over in Brussels, the European Commission asked Italy to reduce its budget deficit by €3.4bn to avoid an excessive deficit procedure.

On the data front, eurozone consumer prices were up 1.1% on the year in December, versus 0.6% in November and matching an earlier estimate. On the month, consumer prices increased 0.5%.

Core inflation – excluding energy, food, alcohol and tobacco – edged up to 0.9% from 0.8% the month before, also in line with previous estimates.

In the EU-28 group of nations, annual inflation came in at 1.2% in December, up from 0.6% the month before.

On the corporate front, Dutch semiconductor supplier ASML and Danish biotechnology firm Novozymes both rallied after better-than-expected fourth-quarter reports.

Meanwhile, fashion house Burberry edged higher after it reported 4% growth in underlying retail sales for the third quarter, boosted by a return to growth for the Asia Pacific region but with the Americas still in decline.

On the downside, however, education publisher Pearson – which has already issued a string of profit warnings in recent years – tanked after it cut its profit forecast for this year and said the dividend will be lower.

Deutsche Bank ticked down after agreeing to pay a $7.2bn fine to the US Department of Justice for misleading investors in its sale of residential mortgage-backed securities in the run-up to the financial crisis.