Stocks slip as caution prevails before U.S. CPI data - BNN Bloomberg

Retail and consumer shares were the biggest drag on European stocks, outweighing positive earnings news from some companies. Credit Agricole SA rallied following a record first-quarter for the French firm's investment bank. Vestas Wind Systems A/S gained after the Danish wind turbine maker returned to profit.

Wednesday's U.S. inflation figures were top of mind for investors, with US stocks tipped to rally if the reading is soft enough to lay the ground for a halt to Fed tightening, teams at Goldman Sachs Group Inc. and JPMorgan Chase & Co. said. The report is expected to show headline CPI rose by five per cent in April on a year-on-year basis, still well above the two per cent level targeted by the Fed.

Policy-sensitive two-year Treasury yields edged up to 4.05 per cent while rates on the 10-year tenor were little changed at 3.51 per cent. An index of dollar strength was steady.

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