LONDON (dpa-AFX) - The UK market turned negative on Tuesday afternoon, after eurozone inflation slowed, triggering speculation that the European Central Bank might enhance stimulus measures to prevent deflation.
Eurozone inflation slowed marginally in September as expected, flash data from Eurostat showed. Inflation came in at 0.3 percent, down from 0.4 percent in August.
Another report revealed that the unemployment rate in the eurozone remained stable as expected in August. The jobless rate came in at 11.5 percent in August, the same rate as in July.
German unemployment increased unexpectedly in September, official data released by the Federal Labor Agency showed. The number of unemployed increased by 12,000 in September from last month, while economists had forecast a decline of 2,000.
The jobless rate came in at seasonally adjusted 6.7 percent, unchanged from August and matched economists' expectations.
France's producer prices declined more-than-expected in August, figures from the statistical office INSEE revealed. Producer prices in the French market dropped 1.4 percent annually, which worse than the 0.5 percent decline forecast by economists.
Meanwhile, data from INSEE showed that household spending increased in August reversing a decline in the previous month.
U.K. house prices unexpectedly declined in September after rising for sixteen straight months amid signs that demand may be starting to ease, the results of a survey by the Nationwide Building Society showed. The house price index dropped 0.2 percent from August, when it climbed 0.8 percent. Economists were looking for a 0.5 percent increase.
Elsewhere, a private gauge of activity in China's manufacturing sector showed sluggish growth for a second straight month in September. The HSBC/Markit Manufacturing Purchasing Managers' Index came in at 50.2 in September, unchanged from the August reading but down from the flash estimate of 50.5.
The Euro Stoxx 50 index of eurozone bluechip stocks is adding 0.86 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is gaining 0.56 percent.
The FTSE 100 index is currently losing 0.14 percent, erasing gains made earlier in the session.
Next said its third-quarter sales fell short of expectations amid warmer weather, and it may cut its profit forecast for the year. The stock declined 4.2 percent.
Inter-dealer broker ICAP said it expects 15 percent decline in revenues for the first half ending September 30, impacted by trading performance in Global Broking and EBS Market. Additionally, the firm said its Group Finance Director Iain Torrens is to step down from ICAP to join TalkTalk Group Plc. The stock fell 2 percent.
Intertek is gaining close to 4 percent. The firm appointed Inchcape Plc's André Lacroix as its chief executive with effect from May 16, 2015. Inchcape fell 4 percent.
Royal Bank of Scotland is gaining 3.3 percent. The lender expects lower impairments for the year than it previously estimated.
Associated British Foods is gaining 2.6 percent. Credit Suisse raised the stock to 'Outperform.'
Other major markets in the region are trading higher.
The Asian stocks followed Wall Street lower on Tuesday amid fears that pro-democracy protests in Hong Kong could weigh down mainland China's slowing economy.
In the U.S., futures point to a higher open on Wall Street. In the previous session, stocks fell as worries about pro-democracy protests in Hong Kong added to geopolitical concerns and encouraging personal income and spending data fueled speculation the Federal Reserve may raise interest rates sooner rather than later. The Dow and the S&P 500 slid about 0.3 percent each, while the tech-heavy Nasdaq slipped 0.1 percent.
Crude for November delivery is rising $0.28 to $94.85 per barrel, while December gold is losing $5.3 to $1213.5 a troy ounce.
Copyright RTT News/dpa-AFX