European sharemarkets were mixed on Tuesday, with Britain's FTSE falling as the United Kingdom's inflation rate hit its highest level in six years.

Britain's Office for National Statistics reported that consumer prices in April were up three percent on 2007, up from 2.5 percent in March. The half a percent inflation increase in a month was the biggest jump since April 2002, prompting fears that the central bank will stop lowering interest rates.

Financial companies were down on the news, with the third-biggest British bank, Barclays Plc, falling for a fourth day, while shares in financial services group Alliance & Leister fell over 10 percent after announcing significant writedowns.

At the close of trading on Tuesday, the FTSEurofirst 300 index of pan-European blue chips lost 0.390 points, or 0.029 percent, to close at 1,346.08, while the UK's FTSE 100 index dropped 8.70 points, or 0.14 percent, to close at 6211.90.

France's CAC index gained 22.46 points, or 0.45 percent, to close at 4998.67, while, Germany's DAX index added 24.24 points, or 0.34 percent, to close at 7060.19.

On the commodity markets, Brent Crude oil dropped US$1.68 or 1.4 percent, to be worth US$122.25, while on the Forex Gold Index, gold dropped US$8.75, or 1 percent, to close at US$865.00.

© NewsRoom 2008