European stock markets close lower following US inflation data

At the close, the benchmark index Stoxx Europe 600 fell by 0.77 percent to 472.77 points.

INFLATION DATA

In France, the CAC 40 index decreased by 0.52 percent to close at 7,387.62 points. In Germany, the DAX index fell by 0.86 percent to 16,547.03 points, the FTSE 100 index in the UK lost 0.98 percent to 7,576.59 points, and the FTSE MIB 30 index in Italy declined by 0.66 percent to 30,249.16 points.

The euro/dollar parity was trading at 1.094 levels, down 0.24 percent as of 20:33 TSI.

According to data released today, the Consumer Price Index (CPI) in the US rose by 0.3 percent on a monthly basis and 3.4 percent on an annual basis in December, exceeding market expectations.

LOWEST LEVEL IN THE LAST 3 MONTHS

Analysts stated that expectations for the US Federal Reserve (Fed) to begin interest rate cuts in March were premature, while Fitch Ratings Chief Economist Brian Coulton expressed that they do not expect the Fed to start interest rate cuts before June or July and that they anticipate three rate cuts this year.

The number of people filing for unemployment benefits for the first time in the US fell to 202 thousand in the week ending January 6, reaching its lowest level in the last 3 months.

While the latest inflation data released in Europe also increased concerns that interest rate cuts might begin later than expected, ECB member Isabel Schnabel noted that it is still too early for interest rate cuts, while another ECB member, Luis de Guindos, stated that current interest rates are their greatest aid in the fight against inflation.

In the UK, growth figures for November will be announced tomorrow.

News Source: AA