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)
Oil producer BP (BP) slipped slightly after losing a Supreme Court bid to freeze compensation payments related the Gulf of Mexico oil spill in 2010.