European stocks held back by inflation worries

Amsterdam

U.S. consumer prices surged at the fastest pace since 1990 that could compel the Federal Reserve into faster policy tightening.

London- by Anil D’Silva

European stocks slipped on Thursday after data showing a spike in U.S. inflation encouraged bets on interest rate hikes and offset some optimism around property developer China Evergrande and a slew of corporate earnings.

The pan-European STOXX 600 fell 0.1%. consumer prices surged at the fastest pace since 1990 that could compel the Federal Reserve into faster policy tightening.

However, China-exposed sectors, including miners as well as construction and materials, gained more than 1% as troubled developer Evergrande averted a destabilising default at the last minute for the third time in the past month.

Swiss chemical company Sika jumped 10.8% after agreeing to buy construction chemicals maker MBCC in a $6 billion deal.

Luxembourg-based ArcelorMittal gained 2.5% after reporting its strongest quarter in more than a decade.

Retail stocks were among the biggest drags, weighed down by British discount retailer B&M, which dropped 4.9% after posting lower first-half core earnings.

Related posts

Leave a Comment