European shares mixed

Europe’s main stock markets wavered on Monday after weak inflation figures raised fears about the health of the eurozone ahead of a stream of key US data due this week. London’s benchmark FTSE 100 index ended down 0.20 percent at 6,743.94. Frankfurt's DAX 30 closed up 0.18 percent to 9,833.07 points while the CAC 40 in Paris fell 0.32 percent to 4,422.84 points compared to Friday's closing levels. ‘In contrast to US markets, traders in Europe continue to be much more cautious with respect to driving markets higher with disappointing economic data acting as an anchor,’ said Michael Hewson at CMC Markets UK. Stocks struck a downbeat tone after official data showed inflation in the 18-nation eurozone is still stuck at the lowest levels since the financial crisis, adding to fears the bloc could slide into deflation. The European Central Bank is so concerned that prices could start falling it has cut its interest rates into negative territory in the hope of boosting lending and pushing inflation back to the bank’s target of nearly 2.0 percent. ‘June’s weak eurozone inflation figure will add to pressure on the ECB to provide more policy support, particularly given recent signs that the recovery may already be slowing,’ said Capital Economics senior economist Jennifer McKeown. The euro gained to $1.3685 from $1.3646 late on Friday in New York. Investors also held their breath ahead of a week of holiday-shortened trading in the US that includes some major economic reports. On the London Bullion Market, the price of gold fell to $1,315 an ounce from $1,317.50 on Friday, according to AFP.