European Stocks Slip Amid Subdued Growth Picture

LONDON ( The Deal) -- European stocks edged lower on Tuesday after mixed day of trading in Asia as eurozone economic data confirmed a picture of subdued growth.

In London, the FTSE 100 was down 0.34% at 6,840.42. U.K. house price data from Nationwide Building Society showed that prices in May rose 11.1% year-on-year, the fastest pace in seven years, though the report noted signs that growth is beginning to moderate.

In Frankfurt, the DAX dropped 0.19% to 9,930.90, and in Paris the CAC 40 was down 0.11% at 4,510.70. European indices are close to their highest point in well over five years.

The annual pace of consumer price growth in May slowed to 0.5% from 0.7%, figures from the European Commission's statistics arm showed, defying expectations for a stable inflation rate. Meanwhile, the eurozone employment rate dropped to 11.7%, just below the consensus forecast for an unchanged 11.8% rate. The European Central Bank meets on Thursday to set rates and ECB President Mario Draghi has indicated he's ready to act to spur growth.

Earlier in the day, a closely watched measure of Chinese factory output rose slightly less than expected in May but supported the perception that Chinese growth is accelerating.

HSBC Holdings plc/Markit Economics' Purchasing Mangers' index rose to 49.4, which was a four-month high but missed a consensus forecast for a reading of 49.7, compared with 48.1 in April.

From the U.S., May factory order data, out at 9 a.m. EDT, is likely to sway the course of afternoon trading in Europe, with economists looking for a month-on-month increase of 0.5%.

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