April 3 (Reuters) - European equities were little changed on Wednesday after data signalled inflation pressures in the region were softening but barely moved market expectations for the European Central Bank's first rate cut.
The continent-wide STOXX 600 (.STOXX), opens new tab was flat at 1047 GMT. Rate-sensitive real estate stocks (.SX86P), opens new tab lost 0.3%, while banks (.SX7P), opens new tab gained 1.0%.
Data showed consumer price growth in the 20 nations sharing the euro currency slowed to 2.4% in March from 2.6% a month earlier as food, energy and industrial goods prices all pulled the headline figure lower. Economists polled by Reuters had expected no change to February's figure.
"Looking under the surface of March's inflation numbers suggests the central bank's Governing Council shouldn't be popping the champagne corks just yet," said Natasha May, global market analyst at J.P. Morgan Asset Management.
"More evidence of cooling wage growth, and therefore services inflation, will be needed. If not, markets may end up disappointed."
While the ECB is expected to leave rates unchanged at its upcoming meeting a week from now, the inflation data barely moved the needle on the 70% chance of a 25-basis-points rate cut in June. 0#ECBWATCH
The region-wide data follows softer-than-expected preliminary inflation readings out of the continent's major economies Germany, France and Italy.
Hopes of interest rates being reduced through the year and optimism around artificial intelligence have buoyed investor sentiment over the past two quarters, with the benchmark index hovering near record highs.
On the day, the technology sector (.SX8P), opens new tab inched up 0.3% in choppy trading. A powerful earthquake in Taiwan raised concerns about disruptions to the vital chip-making industry, which had spearheaded much of the global rally in the previous quarter.
Among individual stocks, solar panel maker Meyer Burger (MBTN.S), opens new tab said it raised gross proceeds of 206.75 million Swiss francs ($227.7 million) through a rights issue. The stock, however, fell 24.2%.
Swiss Re (SRENH.S), opens new tab dropped 1.9% to the bottom of Switzerland's benchmark index (.SSMI), opens new tab after the reinsurance firm said it would appoint its corporate solutions boss Andreas Berger as group chief executive in July, replacing long-serving CEO Christian Mumenthaler.
FinecoBank (FBK.MI), opens new tab gained 5.9% after brokerage J.P.Morgan upgraded the Italian bank to "overweight", while German chipmaker Infineon (IFXGn.DE), opens new tab rose 2.6% on a Morgan Stanley upgrade to "overweight."
Later in the day, investors will also parse remarks from Federal Reserve Chair Jerome Powell for clues on when the U.S. central bank will deliver its first rate cut.
Reporting by Johann M Cherian and Ozan Ergenay; Editing by Eileen Soreng, Sonia Cheema and Savio D'Souza
