European stocks extended yesterday's losses in early trading but the DAX and CAC40 could recover and are now trading in positive territory. The commodity heavy FTSE100 is weighed down by oil and financial stocks. Fears of a possible Grexit, a Greek Exit from the Eurozone, re-emerge. Greek Defence Minister said that if Greece will get no help from the European Union it can look somewhere else. European Commission President Jean-Claude Juncker warned Greece that the Eurozone is not going to accept Tsirpas plans.
Weak data from China fuelled expectations on further monetary easing by the People's Bank of China. China's consumer inflation hit a five-year low rising just 0.8% from a year before and factory deflation further grew. The Chinese PPI declined for the 35th consecutive time. Deflation grew more-than-expected by -4.3% in January. Economists expected a reading of -3.7%. In December the PPI was at -3.3%. CPI for January came in at 0.8%, lower than the estimated 1.1%, further slowing compared to 1.5% in December.
The French Industrial Production, month on month, rose by 1.5% in December, beating forecasts for an increase by 0.3%. The solid growth in December came after disappointing data from November with a revised negative growth -0.2%. Year on year Industry output declined -0.1% compared to -2.6% in November.
While Industrial Production declined, Manufacturing Production rose in December.
U.K.'s Industrial Production declined by -0.2% on a monthly basis in December according to the U.K. Office for National Statistics, short of expectations for an 0.3% increase. On a yearly basis Industrial Production grew less than predicted 0.5% compared to forecasts of 0.8%. Manufacturing Production grew by a seasonally adjusted 0.1% in December, compared to expectations for an increase of 0.3%. Year on year it rose by 2.4%, beating expectations of 2.0%. Markets await the NIESR GDP Estimate scheduled for 15:00 GMT.
The FTSE 100 index is currently trading -0.48% quoted at 6,804.33 points. Germany's DAX 30 gained 0.25% trading at 10,689.65. France's CAC 40 is currently trading at 4,669.45 points, 0.39%.