LONDON ( The Deal) -- European stocks paused for breath on Tuesday, with U.K. indices losing ground as news of strong industrial output increased the chances of a near-term rate rise.
Asian indices took their cue from Wall Street and closed largely in the green, though Japanese markets retreated as the yen rose.
In China, the government cut reserve requirements for certain lenders as it seeks to spur growth. The state statistics bureau said Chinese consumer prices rose at an annual pace of 2.5% in May, just ahead of expectations, and up from the month before, with the monthly rate up 0.1%, defying expectations for a decline. But producer prices fell 1.4% in the year and 0.1% month-on-month.
In the U.K., April figures showed industrial output was 3% higher than a year ago. That was the fastest growth in more than three years and above the 2.8% consensus forecast. Output rose 0.4% month on month.
In London, the FTSE 100 was down 0.41% at 6,846.66. Expectations are shifting toward a Bank of England rate rise from the historic low 0.5% later this year rather than next year.
In Frankfurt, the DAX was up 0.19% at 10,027.81 and in Paris the CAC 40 climbed up 0.15% to 4,596.00.
Bank of Ireland shares dropped more than 3% after Wilbur Ross said he would sell his outstanding 5.5% stake. At the current price the 1.8 billion shares he plans to sell are worth about 495 million euros ($672.5 million)
Imperial Tobacco rose after announcing plans to hold an IPO of a minority stake in tobacco distribution unit Compania de Distribucion Integral Logista Holdings of Spain.
In Paris, shares in conglomerate Bouygues fell on a Bloomberg report that wireless services provider Iliad had made an informal offer of between 4 billion euros and 5 billion euros or its telecom unit but was rebuffed because Bouygues is seeking between 7 billion to 8 billion euros.
Meanwhile, Atlanta-based IntercontinentalExchange Group (ICE - Get Report) set a price range for the IPO of its European stock exchanges group Euronext that would value the business at as much as 1.75 billion euros. The shares are to be listed in Paris, Amsterdam and Brussels, and eventually also in Lisbon.
In Tokyo, the Nikkei 225 closed down 0.85% at 14,994.80. In Hong Kong the Hang Seng rose 0.86% to close at 23,135,74. China's securities regulator cleared the mainland China IPO plans of 10 companies, seemingly ending an unconfirmed suspension of stock market listings.