LONDON: European stock markets mostly rose on Tuesday, after gains across most of Asia, but London fell as surging inflation data sent the pound flying, dealers said.
"European shares are... showing little overall direction on a continuing lack of major news and data," said analyst Markus Huber at trading firm City of London Markets.
"This might not be a bad thing as this provides stocks with an opportunity to consolidate at or near recent highs."
Frankfurt's benchmark DAX 30 index added 0.1 percent to stand 300 points below its historic peak in mid-morning deals, while the Paris CAC 40 rose 0.3 percent.
Germany's Deutsche Bank saw its share price jump 3.67 percent to 15.91 euros to top the risers' board in Frankfurt.
The lender launched a capital increase late Monday and also revealed that US authorities had closed an investigation into its past manipulation of currency markets.
On the downside in Europe, London's FTSE 100 retreated 0.2 percent from Monday's record closing high.
Sentiment was dented after official data showed British 12-month inflation soared to 2.3 percent in February -- reaching the highest level since 2013.
Higher inflation translates into rising company costs and weaker consumer expenditure.
"Rising prices are bad for most stocks as they can push up input costs, which makes everything more expensive for a corporate," said City Index analyst Kathleen Brooks.
"However, consumer stocks: food producers, clothing retailers, restaurants etc, are particularly badly hit as rising prices can erode consumer spending."
The news also sent sterling flying higher on expectations of rising interest rates.
The stronger pound weighs on FTSE-listed multinational companies that earn income abroad.
Stocks were weighed down Monday by trade fears after G20 finance chiefs failed to renew their anti-protectionist pledge at a weekend gathering, fanning concerns over US President Donald Trump's "America First" push.
However, Asian markets mostly fizzed higher Tuesday as investors snapped up bargain shares.
Hong Kong stocks won 0.4 percent -- marking four days of gains that have pushed the Hang Seng Index to its highest level since July 2015.
Tokyo however lost 0.3 percent as traders returned from a long weekend to find the yen had strengthened significantly against the dollar.
The euro rose against the dollar on relief that centrist Emmanuel Macron came out on top in the first French presidential debate Monday, seeing off his closest rival, the far-right, anti-EU candidate Marine Le Pen.
- Key figures around 1115 GMT -
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London - FTSE 100: DOWN 0.2 percent at 7,418.90 points
Frankfurt - DAX 30: UP 0.1 percent at 12,066.94
Paris - CAC 40: UP 0.3 percent at 5,024.6
EURO STOXX 50: UP 0.4 percent at 3,451.83
Hong Kong - Hang Seng: UP 0.4 percent at 24,593.12 (close)
Shanghai - Composite: UP 0.3 percent at 3,261.61 (close)
Tokyo - Nikkei 225: DOWN 0.3 percent at 19,455.88 (close)
New York - Dow: DOWN less than 0.1 percent at 20,905.86 (close)
Euro/dollar: UP at $1.0796 from $1.0741
Pound/dollar: UP at $1.2465 from $1.2358
Dollar/yen: UP at 112.55 yen from 112.54 yen
Oil - West Texas Intermediate: UP 31 cents at $48.53 per barrel
Oil - Brent North Sea: UP 44 cents at $52.06
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