European stock markets weakened on Thursday as investors digested the latest heated U.S. inflation report and holiday trading reports drew attention to the U.K. retail sector.

At 4:00 am ET (0900 GMT), Germany’s DAX was trading 0.2% lower, France’s CAC 40 was down 0.6% and Britain’s FTSE 100 was down 0.2%. Global markets are still studying the release of December’s U.S. consumer price index, which showed the biggest annual gain since 1982. The release reinforced expectations of another interest rate hike in the next 12 months and followed Federal Reserve Chairman Jerome Powell’s pledge to curb inflation. without derailing the economic recovery in his reappointment testimony on Capitol Hill earlier this week.

Back in Europe, a number of ECB policymakers are scheduled to speak later Thursday, but that central bank is not seen as close to raising interest rates due to differing eurozone labor market conditions and the greater fragility of the recovery in countries such as Italy. In terms of corporate news, the UK retail sector is in focus on Thursday after a number of important players released trade reports for the important holiday period.

 Marks & Spencer shares fell 5% despite the UK retailer raising its profit forecast after reporting strong Christmas results. The group is recovering from a decade of decline and its shares have nearly doubled in the past year. Tesco shares fell 2.1% but remained close to their highest level since 2014, despite the UK’s biggest supermarket raising its full-year profit forecast after claiming its highest market share in four years.

On the other hand, ASOS shares rose 6.4% after the online fashion retailer was able to reiterate its – admittedly already downgraded – forecast despite supply chain issues affecting sales growth in the four months to the end of the year. Volkswagen shares fell 1.7% after the German auto giant was forced to close two plants in the Chinese city of Tianjin due to recent outbreaks of Covid-19. Toyota has already suspended production at its Tianjin plant. The coronavirus continues to affect life in Europe. Germany reported more than 80,000 cases of coronavirus on Wednesday, a new daily record, prompting Chancellor Olaf Scholz to propose mandatory injections for all adults. Greece is set to extend some restrictions,

Denmark is to offer a fourth vaccination to vulnerable citizens, while UK Prime Minister Boris Johnson is struggling to maintain his position after admitting that he had breached his own restrictions, claiming he did not realize that a gathering of more than 40 people with drinks and snacks in his garden was a party (an invitation sent by his private secretary to more than 100 people invited guests to bring their own alcoholic beverages).

Oil prices stabilized after mixed data from the U.S. Energy Information Administration. A report released on Wednesday showed crude oil inventories fell by 4.5 million barrels last week, much more than expected, with inventories reaching their lowest level since October 2018.

However, gasoline inventories increased by 8 million barrels, indicating that fuel demand was hit by Omicron. . U.S. crude futures rose to $82.67 a barrel by 4:00 a.m. ET, while the Brent crude contract rose 0.1 percent to $84.76.

Both contracts had jumped more than 1% in the previous session. In addition, gold futures fell 0.4% to $1,819.40 an ounce, while EUR/USD rose 0.2% to 1.1465, a two-month high.