LONDON: European stock markets faltered on Thursday after recent heavy losses triggered by higher-than-expected US inflation.
London rose, Paris fell and Frankfurt stagnated as the halfway mark approached.
The yen was under pressure, with weak Japanese data further fueling speculation that the Bank of Japan might intervene to support the unit.
Traders were awaiting U.S. retail sales data released later in the day.
Stocks suffered a rout on Wednesday as higher-than-expected U.S. inflation stoked fears of bigger interest rate hikes from the Federal Reserve.
“Roller Coaster Week”
“Equity markets are a bit mixed on Thursday after a roller coaster week on the eve and after of the US inflation report,” said analyst Craig Erlam of trading platform OANDA.
Stock markets rally, as the euro briefly soars
Data showed annual consumer price inflation in the United States slowed to 8.3% in August from 8.5% in July, but markets were expecting a bigger drop.
Asian stock markets mostly posted cautious gains on Thursday, but Shanghai and Seoul plunged.
Analysts said traders had forecast an expected 75 basis point interest rate hike by the Fed at a meeting next week.
The data “reinforced expectations that the Fed will … proceed with further aggressive hikes until inflation gets back under control,” said Forex.com analyst Fawad Razaqzada.
US producer price data also affected market sentiment, showing a decline in costs for the second month in a row, mainly due to falling fuel prices in the US.
Global consumer prices have soared this year due to Russia’s invasion of Ukraine – which has driven up energy and food costs – and due to supply chain strains. supply aggravated by Covid shutdowns in China.
Central banks are aggressively raising interest rates in an attempt to calm prices, but this is dampening economic output, raising expectations of a global recession.
Key figures around 11:00 GMT
London – FTSE 100: UP 0.4% to 7,315.50 points
Frankfurt – DAX: APARTMENT at 13,022.23
Paris – CAC 40: DOWN 0.4% to 6,197.47
EURO STOXX 50: DOWN 0.2% to 3,561.43
Tokyo – Nikkei 225: 0.2% higher at 27,875.91 (close)
Hong Kong – Hang Seng Index: UP 0.4% to 18,930.38 (close)
Shanghai – Composite: DOWN 1.2% to 3,199.92 (close)
New York – Dow: UP 0.1% to 31,135.09 points (closing)
Dollar/yen: UP to 143.46 yen against 143.08 yen on Wednesday evening
Euro/dollar: DOWN to $0.9976 against $0.9981
Pound/dollar: DOWN to $1.1504 from $1.1539
Euro/pound: UP at 86.73 pence against 86.49 pence
North Sea Brent: DOWN 0.6% to $93.51 a barrel
West Texas Intermediate: DOWN 0.6% to $87.95 a barrel