STOXX Europe index down 0.3
Currency markets steady; Tbills eye default risk
U.S. CPI due at 1230 GMT

SINGAPORE, May 10 Reuters Stocks were lethargic and oil slid on Wednesday ahead of U.S. consumer price data that could damage hopes for interest rate cuts later this year, while President Joe Bidens failure to break a deadlock on the debt ceiling also dampened markets.

Europe39;s benchmark STOXX index fell 0.3, echoing a decline in MSCI39;s broadest index of AsiaPacific shares outside Japan, and SP 500 futures also sagged.

The sour mood in European stocks came despite uplift from the financial sector, where expectationbeating earnings from Credit Agricole helped banks be the top sectoral gainers on the STOXX 600.

Oil prices also sagged, ending a threeday rally, with Brent crude down 1 as U.S. inventories rose in a possible sign of weakening demand.

April U.S. consumer price data is due at 1230 GMT and economists expect the headline CPI to hold steady at an annual 5 and core CPI to moderate very slightly to 5.5, though anything stickier could confound bets interest rates will fall.

That39;s the thing that39;d get taken out if CPI numbers come in on the higher side, said ING economist Rob Carnell.

It doesn39;t look particularly sensible if inflation is falling at too slow a rate and that could feed through into higher longerterm treasury yields as well.

Interest rate futures imply about a 60 chance the Federal Reserve cuts rates in September, according to the…