European stocks little changed as German inflation cools

European equities were little changed as softer-than-expected inflation readings in Germany and France reinforced the view that eurozone price pressures are easing. Germany’s June inflation slowed to 2.3%, its lowest since February, while France’s June inflation fell to 1.8%. The UK market edged higher, with the pound strengthening to $1.343, its highest level since mid-June. The muted reaction in the DAX suggests investors are balancing the supportive implications of cooling inflation for future ECB policy against the lack of an immediate catalyst for a stronger risk-on move. Overall, the report points to stable-to-slightly positive sentiment for European stocks and modest currency support for sterling.