The pan-European Stoxx 600
was down 0.2% in early trade, with basic resources and energy stocks slipping 1% to lead losses while retail stocks bucked the trend to add 1.9%.
Thank you for reading this post, don't forget to subscribe!
U.S. stocks fell sharply on Tuesday after a key August inflation report came in hotter than expected, hurting investor optimism for cooling prices and a less aggressive Federal Reserve.
U.S. consumer price index (CPI) inflation rose by 0.1% for the month and 8.3% annually in August, the Bureau of Labor Statistics reported Tuesday, defying economist expectations that headline inflation would fall 0.1% month on month.
Core CPI, which excludes volatile food and energy costs, climbed 0.6% from July and 6.3% from August 2021.
The reading fueled further speculation that the U.S. Federal Reserve will continue its aggressive policy of tightening monetary policy.
The inflation report was one of the last pieces of data on inflation the Fed will see ahead of its September meeting, where the central bank is expected to deliver its third consecutive 0.75 percentage point rate hike in an effort to combat high inflation.