Euro markets down 1.3% after US inflation data

LAST UPDATE: 16.05

Major European stocks extended losses on Wednesday after investor sentiment was weighed down by inflation data across the Atlantic that showed the cost of living in the US continued to rise sharply with the Consumer Price Index to run at a beastly rate of 9.1% in June having far exceeded the forecasts and recording for another month a new record of 40 years.

It is characteristic that analysts’ estimates expected the index to show an acceleration, albeit a significantly milder one at 8.8%.

Similarly, the structural measure of the index, which excludes volatile food and energy prices, also jumped sharply to 5.9% when forecasts expected it to move to 5.5%.

Analysts fear the new measurement could prompt the Federal Reserve to raise interest rates by another 75 basis points at this month’s monetary policy meeting.

In the focus of investment interest and the eurowhich fell today for the first time in nearly two decades below par against the dollaras fears of aggressive monetary policy tightening and growing concerns about an impending recession in the eurozone continued to weigh on the common European currency.

In this climate, the pan-European index Stoxx 600 is down about 1.3% at 411 points, with banking, health care and mining stocks the biggest losers.

In the individual boards, the German DAX loses 1.55% to 12,700 units, the French CAC 40 the British one also recorded losses of 1.4% at 5,960 units FTSE 100 slipping 0.8% to 7,150 units.

In the periphery, the Italian FTSE MIB the Spanish also moves down to -1.34% at 21,200 points IBEX 35 loses 1.05% to 7,930 points.

In the individual sharesFinnish drugmaker Orion added 7% as it raised its outlook for the year after signing a partnership deal with Merck to develop a prostate cancer drug.

French electricity group EDF has requested a suspension of trading in its shares amid plans to nationalize it. The French government is willing to pay more than 8 billion euros to bring the energy giant back under full state control.

Sta macro of the day, Eurozone industrial production grew more than expected in May, as the production of capital and non-durable consumer goods strengthened. According to Eurostat, industrial production in the 19 euro countries increased by 0.8% on a monthly basis and by 1.6% compared to one before. Estimates had seen a rise of 0.3%.

At Germany, the annual rate of inflation fell in June due to temporary government interventions. According to final data released by Germany’s statistics agency, consumer prices rose 7.6 percent year-on-year, according to the forecast of economists polled by the Wall Street Journal. In May, consumer prices rose 7.9%, the highest level since December 1973.

Most stock markets in the Asia-Pacific region posted moderate gainswith investor interest focused on trade data released by China and decisions to raise interest rates by 50 basis points by the central banks of Korea and New Zealand.