The European markets opened higher today, but faced selling pressures after the release of the US Consumer Price Index report, which was higher than expected, increasing fears about ongoing inflation and the potential for extended monetary tightening by the Federal Reserve.
Despite this, the markets saw strong buying activity during the pullback, pushing European indices to close with mixed gains. The Stoxx 600 index rose by 0.1%, while the German DAX increased by 0.5%, and the French CAC gained 0.2%. The British FTSE 100 finished the session up by 0.35%, while the Spanish IBEX led the gains with a rise of 1.0%. In contrast, the Italian FTSE MIB closed unchanged.
Investors are watching the impact of this data on the US Federal Reserve's decisions regarding interest rates, amidst conflicting expectations about the future path of monetary policy. Nonetheless, European markets demonstrated an ability to absorb pressures, benefiting from buybacks during declines and ongoing optimism about economic growth prospects in the region.
