European stocks wobble as eurozone economy falters

LONDON, May 15 (AFP): European equities fell Thursday as investors digested gloomy eurozone data showing anaemic economic growth for the first quarter of the year.
London's benchmark FTSE 100 index slid 0.02 per cent to 6,877.18 points in early afternoon deals, despite news of a £3.7-billion ($6.2-billion, 4.5-billion-euro) merger of retail giants Carphone Warehouse and Dixons.
Frankfurt's DAX 30 shed 0.06 per cent to 9,748.69 points, with losses capped by impressive German growth, while in Paris the CAC 40 lost 0.29 per cent compared with Wednesday's closing values to 4,488.13 points.
In foreign exchange activity, the European single currency sank to $1.3651 -- the lowest level since February 27. It later stood at $1.3659, down from $1.3713 late in New York on Wednesday.
Gross domestic product across the 18-nation eurozone grew by just 0.2 per cent in the three months to March, the Eurostat data agency revealed, dashing market expectations for 0.4-per cent expansion.
However, the German economy sprinted ahead, seeing growth double to 0.8 per cent in the first quarter from the previous three months, beating market forecasts.
"GDP figures largely disappointed, with only the German release providing any upside to the data," said Alpari trader Craig Erlam.
"That's pretty much in line with what we've become accustomed to, a two tier eurozone with Germany the engine behind any growth."
In a separate data release, Eurostat confirmed that eurozone inflation rose to 0.7 per cent in April.
That was up from the 0.5 per cent reported in March, but still a long way from the European Central Bank's 2.0-per cent target.
Meanwhile, the euro slid to 81.64 pence from 81.78 pence on Wednesday, while the British pound fell to $1.6752 from $1.6769.