Europe close: Stocks end mixed after US CPI prints ahead of forecasts
European shares finished on a mixed note on Thursday as investors digested the highest reading for US consumer prices in 40 years.
"As yet it looks like there is not going to be a rerun of January’s selloff – rising prices have been factored in to the outlook, and despite some wobbles investors seem convinced that companies can continue to pass on these price increases to customers," said IG chief market analyst Chris Beauchamp.
The pan-European Stoxx 600 index was down 0.21% to 472.35, alongside a 0.41% decline for Paris's Cac-40 to 7,101.55.
Italy's FTSE Mib on the other hand edged up by 0.23% to end at 27,190.20.
In the background, the yield on the benchmark 10-year German bund jumped by seven basis points to 0.285%.
Euro/dollar was 0.43% higher alongside at 1.1474.
According to the US Department of Labor, US consumer price gains clocked in with a 7.5% jump year-on-year (consensus: 7.3%) for January, up from December's pace of 7.1%.
"Today’s numbers likely will re-embolden the hawks seeking a rapid balance sheet run-off, though the loudest voices do not necessarily have the biggest influence on policy," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.
Shepherdson's forecasts called for a peak in core US CPI near 6.5% in March, followed by a rapid decline.
In another busy day of equity news, Credit Suisse shares fell roughly 7% after posting a $2.2 bln quarterly loss, hurt by provisions to settle its investment bank's legal costs and a slowdown in business for its trading and wealth management divisions.
Shares in consumer goods conglomerate Unilever were lower by 1% as the company warned on higher costs and ruled out any big acquisitions for the foreseeable future after its failed bid for GlaxoSmithKline’s consumer health arm.
AstraZeneca shares were up 3% as the company lifted its dividend.
Finnish food packaging company Huhtamaki were up 6% as its annual results pleased investors.
Shares of Siemens jumped 4% after the company said it was seeing "extraordinary" order intake from its customers, while French spirits group Pernod Ricard rose as it forecast strong sales growth in its 2022 fiscal year.
On the downside, fast-food delivery firm Delivery Hero plunged more than 31% after 2022 earnings guidance failed to meet analysts' expectations despite the German online takeaway food company's outlook for revenue growth.