Mixed image in the euro markets, all eyes on inflation data

Most European stock exchanges continue to trade with mixed signs on Wednesday as investors evaluate the data that show an “explosion” of inflation in China, Germany and the US, bringing back to the fore the possibility that central banks will be forced to tighten their monetary policy more aggressively. .

Data from the US showed annual inflation jumping to a 31-year high of 6.2% in October, surpassing analysts’ estimates of an annual increase of 5.9%. On a monthly basis, the price index increased by 0.9%, compared to the analysts’ estimate of 0.6%.

Earlier, data released in China showed that producer prices climbed to a 26-year high last month.

The data of the German statistical service for October also showed a strong rise in prices. In particular, prices increased by 4.5% on the basis of national standards and by 4.6% on a harmonized basis, according to Destatis.

The rally of inflation in recent months maintains the concern about the “resilience” of central banks to maintain the particularly facilitative direction of their monetary policy. The European Central Bank expects further inflation growth this year, before starting to decline in 2022.

On the board, the pan-European Stoxx 600 index recorded small losses of 0.4% at 482.52 points.

The German DAX is down 0.07% at 16,028.74 points, the French CAC 40 is down 0.2% at 7,026.48 points, while the British FTSE 100 is up 0.6% at 7,319.58 points.

In the region, the Italian FTSE MIB recorded small gains of 0.06%, while the Spanish IBEX 35 strengthened 0.5%.

In business developments, the German Infineon lost its initial profits and is currently falling 1.5% in the aftermath of its results for the last quarter. On the other hand, the share of the British Marks & Spencer reacted with an 11% rally after the company announced that it was revising its forecasts for the whole year.