European stocks mixed ahead of the U.S. inflation data
European stocks mixed ahead of the U.S. inflation data European stocks were mixed on Wednesday as investors awaited the release of U.S. inflation data. The pan-European Stoxx 600 index was up 0.1% in early trading, while the German DAX and French CAC 40 were both flat. The UK's FTSE 100 was down 0.2%. Investors are closely watching the U.S. inflation data, which is due to be released later in the day. The data is expected to show that inflation rose to 4.7% in May, up from 4.2% in April. This would be the highest level of inflation since 2008. The rise in inflation has been driven by a number of factors, including supply chain disruptions, rising commodity prices, and a surge in demand as the global economy recovers from the pandemic. The Federal Reserve has said that it expects the rise in inflation to be temporary, but some investors are concerned that it could lead to higher interest rates and slower economic growth. In Europe, investors are also keeping an eye on the latest developments in the Covid-19 pandemic. The UK has delayed its plans to lift all Covid-19 restrictions by four weeks, while Germany has extended its lockdown measures in some areas. Despite these concerns, some European stocks have been performing well. Shares in the German online fashion retailer Zalando rose by 2.5% after it raised its sales forecast for the second quarter. The company said that it expects sales to grow by between 27% and 29% in the second quarter, up from its previous forecast of 26% to 28%. Meanwhile, shares in the French luxury goods company LVMH rose by 1.5% after it announced that it had acquired a 60% stake in the Italian fashion house Etro. The deal is part of LVMH's strategy to expand its presence in the luxury fashion market. Overall, European stocks are likely to remain volatile in the coming weeks as investors continue to weigh the impact of rising inflation and the ongoing Covid-19 pandemic. However, some companies are still expected to perform well, particularly those in the technology and luxury goods sectors.