AGL 5.60 Decreased By ▼ -0.18 (-3.11%)
ANL 8.90 Increased By ▲ 0.02 (0.23%)
AVN 76.85 Decreased By ▼ -2.07 (-2.62%)
BOP 5.26 Decreased By ▼ -0.02 (-0.38%)
CNERGY 4.63 Decreased By ▼ -0.07 (-1.49%)
EFERT 81.27 Decreased By ▼ -0.33 (-0.4%)
EPCL 50.08 Decreased By ▼ -0.83 (-1.63%)
FCCL 13.16 Decreased By ▼ -0.22 (-1.64%)
FFL 5.69 Decreased By ▼ -0.03 (-0.52%)
FLYNG 7.07 Decreased By ▼ -0.08 (-1.12%)
FNEL 4.79 Decreased By ▼ -0.03 (-0.62%)
GGGL 8.80 Decreased By ▼ -0.10 (-1.12%)
GGL 14.55 Decreased By ▼ -1.33 (-8.38%)
HUMNL 5.69 Decreased By ▼ -0.08 (-1.39%)
KEL 2.63 Decreased By ▼ -0.03 (-1.13%)
LOTCHEM 28.60 Decreased By ▼ -0.45 (-1.55%)
MLCF 24.49 Decreased By ▼ -0.61 (-2.43%)
OGDC 72.43 Decreased By ▼ -0.02 (-0.03%)
PAEL 15.36 Increased By ▲ 0.01 (0.07%)
PIBTL 5.00 Decreased By ▼ -0.05 (-0.99%)
PRL 16.10 Decreased By ▼ -0.19 (-1.17%)
SILK 1.08 Decreased By ▼ -0.01 (-0.92%)
TELE 9.14 Decreased By ▼ -0.23 (-2.45%)
TPL 7.23 Decreased By ▼ -0.10 (-1.36%)
TPLP 18.61 Decreased By ▼ -0.34 (-1.79%)
TREET 21.68 Decreased By ▼ -0.32 (-1.45%)
TRG 136.71 Decreased By ▼ -4.44 (-3.15%)
UNITY 16.88 Decreased By ▼ -0.14 (-0.82%)
WAVES 9.86 Decreased By ▼ -0.04 (-0.4%)
WTL 1.41 No Change ▼ 0.00 (0%)
BR100 4,225 Decreased By -29.6 (-0.7%)
BR30 15,518 Decreased By -214.7 (-1.36%)
KSE100 42,150 Decreased By -243.4 (-0.57%)
KSE30 15,588 Decreased By -75.7 (-0.48%)
Follow us

European shares dipped on Wednesday after higher-than-expected US inflation cemented views of a large interest rate hike by the Federal Reserve next week, but a rally in retailers led by Spain’s Inditex kept declines in check.

The continent-wide STOXX 600 index slipped 0.1%, with rate-sensitive technology stocks down 0.5%. The banks index in Europe edged 0.5% higher.

US consumer prices rose more than expected in August, data showed on Tuesday, giving the Fed ammunition to deliver a third 75-basis-point (bps) interest rate increase next Wednesday.

The reading sparked the steepest fall in two years on Wall overnight and also led to a broad sell-off in Asian markets earlier in the day.

The benchmark European index was headed for a month of gains despite snapping a three-session winning streak on Tuesday, supported by gains in lenders after the European Central Bank (ECB) delivered an unprecedented 75 bps interest rate hike last week.

ECB policymakers see a rising risk that they will have to raise the key interest rate to 2% or more to curb record-high inflation in the euro zone despite a likely recession, sources told Reuters. Inflation hit 9.1% in August, well above the central bank’s 2% target.

“The interesting thing about European inflation is that it has become much more policy-dependent, so we kind of expect inflation to peak somewhere at the end of this year,” said Erik-Jan van Harn, global economics & markets macro strategist at Rabobank in Utrecht, Netherlands.

European shares slide as U.S. inflation hots up

Retailers jumped 2.5%, leading gains among sectors after fashion brand Zara’s owner Inditex surged 5.5%. The Spanish fast-fashion retailer reported a 24.5% jump in six-month sales and a higher profit than a year ago, closing July on a strong footing just before fashion demand started weakening last month due to rampant inflation.

Spanish stocks were among the few gainers in Europe, up 0.5%. Meanwhile, the European Commission unveiled a series of proposals to curb the energy price spike after Moscow slashed gas supplies in response to sanctions for its invasion of Ukraine.

“If the EU says we are going to have a price cap for power and electricity or gas prices then that could turn out really different because EU has less incentive to decrease demand, then the inflation is going to peak lower but it is going to continue for longer,” Rabobank’s van Harn said.

Among other stocks, American-Italian-French automaker Stellantis NV gained 1.1% after it said late on Tuesday that it would buy back shares worth about 923 million euros ($919.31 million) from General Motors Co.

Spanish power company Iberdrola fell 1.3% as it agreed to sell to Swiss investment fund Energy Infrastructure Partners (EIP) a 49% stake in a German offshore wind farm for 700 million euros ($700 million).

Comments

Comments are closed.

European shares drop; Inditex boosts retailers

Saudi Arabia extends term of $3bn deposit: SBP

Rupee remains unchanged against US dollar

Giving the govt a chance, sit with us and call elections: Imran Khan

Oil ticks up ahead of OPEC+ meeting, EU Russian oil ban

OMCs take a hit as petroleum sales drop in Pakistan

Pakistan's pitches from 'dark ages', says cricket chief Ramiz

India to continue buying Russian oil: ministry source

Imran Khan says Senator Azam Swati treated in 'vengeful manner'

Qurat ul Ain Fatima appointed new ECP spokesperson

OPEC set to stick or cut more amid plan to cap Russian oil price