The euro markets closed with mixed signs on Wednesday, with investor interest turning to the latest data on inflation, which showed a new jump in prices in October.
In particular, annual inflation jumped to 4.1% in October, after rising by 3.4% in September, as shown by Eurostat data. A year ago, the percentage was -0.3%.
The highest contribution to the annual inflation rate came from energy (2.2%), the services sector (0.86%), and non-energy industrial goods (0.55%).
The figures come in the wake of reassuring statements by the president of the European Central Bank to the European Parliament on Monday about price developments next year. Christine Lagarde reiterated that the central bank expects inflation to slow next year, adding that it does not expect an increase in European interest rates in 2022.
In this climate, the pan-European Stoxx 600 recorded an increase of 0.14% to 489.95 points while the other pan-European Stoxx Stoxx 50 fell 0.02% to 4,400.45 points.
On the rest of the board, the German DAX gained 0.02% to 16,251.25 points and the French CAC-40 added 0.06% to 7,156.85 points. On the contrary, the British FTSE 100 lost 0.49% to 7,291.20 points, following data showing a new jump in inflation in October to its highest level since December 2011. In particular, the consumer price index rose 4.2% year-on-year in October, after from a 3.1% rise in September, according to the ONS statistical service. Economists expected a rise of 4%.
In the periphery, the Spanish IBEX-35 closed at 8,997.70 points with a drop of 0.47% while the Italian FTSE MIB strengthened by 0.07% to 27,825 points.
Meanwhile, the European Central Bank said in a stability report that the eurozone housing market was “heating up”, increasing the chances of a correction in both the residential and commercial real estate sectors.
With families creating savings during the pandemic and increasingly working from home, demand for real estate is rising, pushing home prices up more than 7% to its highest level since 2005.
“The risk of price correction in the medium term has increased significantly amid heightened estimates of house price overvaluations,” the ECB said in its half-yearly report.
Bitcoin was also in the spotlight as the world’s largest cryptocurrency fell below $ 60,000 on Tuesday, losing more than its 12 percent record on Nov. 10. At the moment, according to investing.com, Bitcoin is moving at $ 60,155.
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