European stock markets wavered Thursday after recent heavy losses triggered by higher-than-expected US inflation. London rose, Paris fell and Frankfurt flatlined nearing the half-way stage. The yen was under pressure as weak Japanese data further fuelled speculation of possible intervention from the Bank of Japan to support the unit. Traders were awaiting US retail sales data released later in the day. Equities suffered a rout on Wednesday as higher-than-expected US inflation stoked concern of more hefty Federal Reserve interest rate hikes. “Stock markets are a bit mixed on Thursday following a rollercoaster week in the run-up to, and aftermath of, the US inflation report,” said analyst Craig Erlam at trading platform OANDA. The data showed US annual consumer price inflation slowing by 8.3 percent in August from 8.5 percent in July but markets had expected a bigger fall. Asian bourses mostly logged cautious gains Thursday, but Shanghai and Seoul dipped. Analysts said traders have priced in an expected 75 basis-point interest rate hike by the Fed at a meeting next week. The data “reinforced expectations that the Fed is going to… proceed with further aggressive hikes until inflation comes back under control,” said Forex.com analyst Fawad Razaqzada. US producer price data also affected market sentiment, showing costs dropping for the second straight month, mainly driven by falling US fuel prices. Global consumer prices have soared this year on Russia’s invasion of Ukraine — which has hiked energy and food costs — and because of supply chain strains worsened by Covid lockdowns in China. Central banks are aggressively hiking interest rates to try and cool prices but this is putting the brakes on economic output, increasing expectations of a global recession.