European markets mixed; FTSE ticks up after UK inflation falls

LONDON — European stocks were mixed Wednesday, losing the positive momentum seen during the previous trading session.

The Stoxx 600 index hovered around the flatline, down 0.02% by 1:04 p.m. London time, with major bourses and sectors diverging. Tech stocks led losses, down 0.95%, while mining stocks added 1.08%.

The U.K.’s FTSE 100 ticked up in afternoon trade, recovering from earlier losses after the country’s inflation print came in in line with expectations. Inflation rose by an annual 2.0% in May, hitting the Bank of England’s target ahead of its policy rate decision on Thursday. The Bank is widely expected to hold rates steady at 5.25%, with the majority of economists polled by Reuters forecasting a cut in August.

Sterling rose slightly after the release, and was trading at $1.2728 by 9:45 a.m. London time.

Data from the euro zone on Tuesday showed inflation in the single-currency euro area rose at an annual rate of 2.6% in May, up from 2.4% in April, the EU’s statistical office Eurostat confirmed in a final reading. Annual inflation within the wider EU was 2.7%, up from 2.6% the previous month.