LONDON – European stocks traded lower on Thursday as global markets digested the latest US inflation data.
The pan-European Stoxx 600 index traded 1% below, with most sectors in negative territory, apart from travel and leisure stocks.
European stocks closed lower on Wednesday as investors reacted to warmer-than-expected U.S. inflation data. The consumer price index, a broad measure of everyday goods and services, soared 9.1% in June from a year ago, and above the Dow Jones estimate of 8.8%.
This marked another month of the fastest pace of inflation since December 1981. Excluding the volatility of food and energy prices, the so-called underlying CPI rose by 5.9%, compared to the estimate of 5.7%.
The reading could cause the Federal Reserve to raise interest rates by another 75 basis points during this month’s meeting. Last month, the Fed raised its benchmark interest rates three-quarters of a percentage point to a range of 1.5% -1.75% in its most aggressive rise since 1994.
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On Wall Street, stocks traded lower as investors reacted to inflation figures. Overnight, U.S. stock futures varied little on Thursday morning as traders expect gains from major U.S. banks JPMorgan Chase and Morgan Stanley.
Mainland Chinese markets led gains in Asia-Pacific on Thursday as Australia’s unemployment rate fell and Singapore tightened its monetary policy.
There are no big gains or data releases on Thursday.
The European Commission will announce new economic forecasts.
– CNBC’s Jeff Cox contributed to this market report.