London-listed stocks came off their lows for the day following the Eurozone’s latest inflation figures
The FTSE 100 and European stocks managed to close in positive territory on Thursday, recouping early losses as inflation fears gripped markets.
The FTSE 100 was up 0.23% to 7,533 as trading ceased across Europe. The CAC in Paris advanced 0.30% to 6,547. In Germany, the DAX climbed 0.42% to 13,683.
On Wall Street, stocks were mixed as a recent market rally appeared to fade. The Dow Jones was muted as Europe stopped trading. The S&P 500 climbed 0.24% to 4,284 and the tech-heavy Nasdaq advanced 0.38% to 12,987.
London-listed stocks came off their lows for the day following the Eurozone’s latest inflation figures.
The euro area annual inflation rate was 8.9% in July 2022, up from 8.6% in June.
Shares in casino operator Rank slumped 2.61%, as analysts highlighted that recent increases in energy prices would prompt cuts to earnings forecasts.
Miner Anglo American was down 2.14% as it traded without entitlement to its dividend payout. HSBC fell 0.92% while Legal & General slipped 2.37%, dragging down the index.
Victoria Scholar, head of investment at Interactive Investor, said: Negative momentum from a down day on US and Asian markets has carried forward to the European session with markets opening in the red. The FTSE 100 is underperforming, trading below resistance at 7,500 while the DAX and the FTSE MIB are eking out modest gains.
US markets closed lower after the Fed’s meeting minutes for July showed that policymakers saw little evidence that inflationary pressures are softening stateside, she said.
She said: The FOMC appears to be committed to its rate hiking path with the potential for a 50 or 75 basis point rate hike in September followed by a possible slowdown in the pace of rate increases in the following months.