German shares lead gains on signs of cooling inflation, UK blue-chips lag

The 10-year German bund yields fell to a more than three-month low at 2.438%. The continent-wide STOXX 600 index inched up 0.2%.

European shares inched higher on Wednesday, with Frankfurt shares leading gains after data showed easing inflation in the German state of North Rhine-Westphalia, while British blue-chip stocks dipped as the pound stayed elevated.

The German DAX rose 0.4% after data showed consumer prices in the state of NRW fell by 0.3% month-on-month in November and were up by 3.0% year-on-year. The 10-year German bund yields fell to a more than three-month low at 2.438%.

The continent-wide STOXX 600 index inched up 0.2%. However, UK's internationally focussed FTSE 100 fell 0.4% as the pound climbed to a fresh three-month high.

Bank of England Governor Andrew Bailey said that the central bank "will do what it takes" to get inflation down to its 2% target, adding that he had not yet seen enough progress towards that goal to be confident. Among single stocks, Philips tumbled 5.6% after the U.S. Food and Drug Administration said it is alerting patients about a safety issue with the Dutch healthcare technology company's machines used for the treatment of obstructive sleep apnea.

Siltronic gained 7.8% after Berenberg upgraded the German chip equipment supplier to "buy" from "hold".

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