European stock markets are moving slightly higher on Wednesday, following it rally of Wall Street indicatorswith investors, however, wary of the figures released today in the UK, which showed a new jump in inflation to a four-decade high.
Federal Reserve Chairman Jerome Powell said yesterday that “we need to see inflation fall in a clear and convincing way,” adding that the US Federal Reserve will continue to push until it sees this decline. The Fed raised interest rates by 50 basis points in its last session, the largest increase in 20 years, and has planned two more increases of 50 basis points. every time in the summer.
Meanwhile, data released today in the UK showed annual inflation jumping to a 40-year high of 9% in April from 7% in March. The country’s central bank carried out its fourth consecutive rate hike in May, pushing its interest rate to 1%, while markets are expecting further increases in the coming months despite the risk of the British economy slipping into recession.
On the board, the pan-European Stoxx 600 index gained 0.1% to 439.60 points.
The German DAX strengthened marginally 0.04% to 14,192.32 points, the French CAC 40 gained 0.15% to 6,438.74 points, while the British FTSE 100 recorded marginal losses of 0.01% to 7,518.21 points.
In the periphery, the Italian FTSE MIB gains 0.1%, while the Spanish IBEX 35 gains 0.5%.