{"id":51488,"date":"2024-10-10T17:17:47","date_gmt":"2024-10-10T17:17:47","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2024\/10\/10\/european-stocks-close-weak-on-hotter-than-expected-u-s-inflation-data\/"},"modified":"2024-10-10T17:17:47","modified_gmt":"2024-10-10T17:17:47","slug":"european-stocks-close-weak-on-hotter-than-expected-u-s-inflation-data","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2024\/10\/10\/european-stocks-close-weak-on-hotter-than-expected-u-s-inflation-data\/","title":{"rendered":"European Stocks Close Weak On Hotter-than-expected U.S. Inflation Data"},"content":{"rendered":"
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European stocks closed weak on Thursday, as hotter-than-expected U.S. consumer price inflation data has further offset optimism the Federal Reserve will continue to aggressively lower interest rates in the coming months.<\/p>\n

Data from the Labor Department showed that its consumer price index rose by 0.2% in September, matching the increase seen in August. Economists had expected consumer prices to inch up by 0.1%.<\/p>\n

The report also said core consumer prices, which exclude food and energy prices, climbed by 0.3% for the second consecutive month. Core prices were expected to rise by 0.2%.<\/p>\n

Meanwhile, the Labor Department said the annual rate of consumer price growth slowed to 2.4% in September from 2.5% in August. Economists had expected the pace of price growth to slow to 2.3%. The annual rate of core consumer price growth accelerated to 3.3% in September from 3.2% in August, while economists had expected the pace of growth to remain unchanged.<\/p>\n

CME Group’s FedWatch Tool is currently indicating an 88.4% chance the Fed will lower rates by 25 basis points next month after slashing rates by 50 basis points last month.<\/p>\n

In European economic news, Germany’s retail sales increased in August, growing 1.6% on a monthly basis, after a 1.5% gain in July and a 1.1% drop seen in June, Destatis reported. On a yearly basis, retail sales posted a growth of 2.1% in real terms and 3.1% in nominal terms.<\/p>\n

Elsewhere, a closely watched gauge of U.K. house prices turned positive for the first time in almost two years, boosted by expectations of more interest rate cuts by the Bank of England.<\/p>\n

The pan European Stoxx 600 ended down 0.18%. The U.K.’s FTSE 100 edged down 0.07%, Germany’s DAX and France’s CAC 40 closed lower by 0.23% and 0.24%, respectively, and Switzerland’s SMI dropped 0.37%.<\/p>\n

Among other markets<\/span> in Europe, Austria, Finland, Greece, Iceland, Ireland, Netherlands, Poland, Portugal, Spain, Sweden and Turkiye closed weak.<\/p>\n

Denmark, Norway and Russia ended higher, while Belgium closed flat.<\/p>\n

In the UK market, Vistry Group ended nearly 4% down, after the company warned of lower-than-expected profits over the next three years due to building costs being underestimated by 10% across nine of its South division housing developments.<\/p>\n

Taylor Wimpey, BAE Systems, Whitbread, WPP, Intertek Group, Croda International, Barratt Developments and Smiths Group lost 2 to 4%.<\/p>\n

Fresnillo, Beazley and GSK gained 3.2 to 3.5%. GSK gained after the company said that it has agreed to pay up to $2.2 billion to settle most lawsuits in U.S. state courts.<\/p>\n

Next, Endeavour Mining, Hiscox, BP and Antofagasta ended higher by 1 to 2%.<\/p>\n

In the German market, Rheinmetall dropped about 3.7%. Siemens Energy and Deutsche Post closed lower by about 2.6% and 2.3%, respectively. Bayer, Fresenius, Adidas and Vonovia also ended notably lower.<\/p>\n

BMW shares ended weak after the carmaker reported a 13% decline in sales in the third-quarter.<\/p>\n

Munich RE and Hannover Rueck both gained nearly 3%. Deutsche Telekom climbed about 1.7% after the company said it plans to propose a buyback program of as much as \u20ac2 billion ($2.2 billion) in 2025. <\/p>\n

In the French market, Teleperformance drifted down 2.7%. Eurofins Scientific closed down 2%, while Unibail Rodamco, Safran, Schneider Electric, Essilor, Carrefour, Legrand and Edenred lost 1 to 1.5%.<\/p>\n

Engie ended 1.1% up. Veolia, TotalEnergies, Societe Generale and AXA posted moderate gains. <\/p>\n<\/p>\n

Market Analysis<\/p>\n<\/div>\n