Europe midday: Stocks down as US inflation print rattles markets
European stocks were still on the back foot by midday on Wednesday as a hotter-than-expected US inflation print continued to rattle markets.
The benchmark Stoxx 600 index was down 0.6%, while France’s CAC 40 was 0.3% lower and Germany’s DAX was off 0.6%.
Figures released on Tuesday by the Labor Department showed that inflation eased to 8.3% on the year in August from 8.5% in July, but came in above expectations of 8.1%. The data fuelled expectations of another big rate hike from the Federal Reserve.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "More aggressive rate rises will mark a sharp escalation in borrowing costs, and worries are ratcheting up about the effect this will have on the global economy, as we hurtle away from the era of cheap money.
"The mighty dollar has strengthened yet again as investors race for a safe haven and this threatens to pile more inflationary pressure onto economies which import commodities priced in dollars."
In equity markets, Zara owner Inditex jumped nearly 5% after it reported a rise in first-half sales and profits.