Europe stocks waver after inflation-driven rout

Europe stocks waver after inflation-driven rout

Higher-than-expected US inflation data has cast a shadow over markets around the world
Higher-than-expected US inflation data has cast a shadow over markets around the world. Photo: Apu GOMES / AFP/File
Source: AFP

New feature: Check out news exactly for YOU ➡️ find “Recommended for you” block and enjoy!

European stock markets wavered Thursday after recent heavy losses triggered by higher-than-expected US inflation.

London rose, Paris fell and Frankfurt flatlined nearing the half-way stage.

The yen was under pressure as weak Japanese data further fuelled speculation of possible intervention from the Bank of Japan to support the unit.

Traders were awaiting US retail sales data released later in the day.

Equities suffered a rout on Wednesday as higher-than-expected US inflation stoked concern of more hefty Federal Reserve interest rate hikes.

'Rollercoaster week'

"Stock markets are a bit mixed on Thursday following a rollercoaster week in the run-up to, and aftermath of, the US inflation report," said analyst Craig Erlam at trading platform OANDA.

PAY ATTENTION: Enjoy reading our stories? Join's Telegram channel for more!

Read also

Asian stocks edge higher, with all eyes on Fed rate path

The data showed US annual consumer price inflation slowing by 8.3 percent in August from 8.5 percent in July but markets had expected a bigger fall.

Asian bourses mostly logged cautious gains Thursday, but Shanghai and Seoul dipped.

Analysts said traders have priced in an expected 75 basis-point interest rate hike by the Fed at a meeting next week.

The data "reinforced expectations that the Fed is going to... proceed with further aggressive hikes until inflation comes back under control," said analyst Fawad Razaqzada.

US producer price data also affected market sentiment, showing costs dropping for the second straight month, mainly driven by falling US fuel prices.

Global consumer prices have soared this year on Russia's invasion of Ukraine -- which has hiked energy and food costs -- and because of supply chain strains worsened by Covid lockdowns in China.

Central banks are aggressively hiking interest rates to try and cool prices but this is putting the brakes on economic output, increasing expectations of a global recession.

Read also

Ghana's inflation rate continues to rise; hits 20-year high of 33.9% in August 2022

Key figures at around 1100 GMT

London - FTSE 100: UP 0.4 percent at 7,315.50 points

Frankfurt - DAX: FLAT at 13,022.23

Paris - CAC 40: DOWN 0.4 percent at 6,197.47

EURO STOXX 50: DOWN 0.2 percent at 3,561.43

Tokyo - Nikkei 225: UP 0.2 percent at 27,875.91 (close)

Hong Kong - Hang Seng Index: UP 0.4 percent at 18,930.38 (close)

Shanghai - Composite: DOWN 1.2 percent at 3,199.92 (close)

New York - Dow: UP 0.1 percent to 31,135.09 points (close)

Dollar/yen: UP at 143.46 yen from 143.08 yen late Wednesday

Euro/dollar: DOWN at $0.9976 from $0.9981

Pound/dollar: DOWN at $1.1504 from $1.1539

Euro/pound: UP at 86.73 pence from 86.49 pence

Brent North Sea crude: DOWN 0.6 percent at $93.51 per barrel

West Texas Intermediate: DOWN 0.6 percent at $87.95 per barrel

New feature: Check out news exactly for YOU ➡️ find "Recommended for you" block and enjoy!

Source: AFP

Online view pixel