European stocks stay in the red post-UK CPI, ZEW

The stocks on the European bourses set-off Tuesday on a weaker footing, and now keep the red, as investors digest economic releases from the Eurozone and UK.

The UK inflation for July revealed that consumer prices grew 0.6% on a yearly basis, after a 0.5% rise a month before, while the German ZEW index improved to 0.5 points in August from July's -6.8, although missed expectations of 1.9 points.

However, losses remain restricted on the back of resumption of the rally in the oil prices, taking the black gold to multi-month tops. Thus, higher oil prices keep the sentiment around the energy and utilities stocks underpinned.

While traders also absorb the corporate earnings results amid increased nervousness, as focus shifts towards a fresh batch of US economic releases due later in the NA session.

Meanwhile, Germany's DAX 30 index drops -0.15% to 10,725, while the UK's FTSE 100 index trades muted around 6,940. Among the other indices, the French CAC 40 index trades unchanged at 4,500, while the pan-European Euro Stoxx 50 index falls -0.40% to 3,038.