Global Economy
European Markets Rally on U.S. Inflation Relief, Oil Prices Stabilize
European equity markets opened higher on Thursday after U.S. inflation numbers came in line with forecasts, easing concerns about further Federal Reserve rate hikes. With the Fed’s next decision now seen as a roughly 40% chance of a hike, risk appetite improved and oil prices paused their recent rally, giving a boost to risk‑on assets. Strong earnings surprises from Maersk and upbeat outlooks from Pandora and Adyen added to the optimism, while Valneva’s weaker revenue weighed on its shares.
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European indices start the day in the green
Major European exchanges opened higher on Thursday morning, with the CAC 40 up 0.23% at 8,695.40 points, Germany’s DAX gaining 0.41%, and the UK’s FTSE 100 slipping 0.31%.
The broader EuroStoxx 50 rose 0.45%, the FTSEurofirst 300 climbed 0.16%, and the STOXX 600 added 0.14%.
U.S. inflation data eases Fed‑rate expectations
The latest U.S. consumer‑price report came in line with expectations, dampening bets on another Federal Reserve rate hike. Traders now price a roughly 40% chance of a hike at the September 15‑16 meeting. The upcoming Producer Price Index (PPI) release at 12:30 GMT will further shape the outlook.
Oil prices pause after recent rally
Crude‑oil prices have steadied after several days of gains, easing concerns on the energy front and supporting risk‑on sentiment.
Key corporate movers
- Maersk surged 8.7% after beating profit estimates and raising its outlook, helped by higher freight rates linked to the Middle‑East tension.
- Valneva fell 3% following a drop in first‑half revenue and a widening operating loss.
- Pandora climbed 4.5% after lifting its full‑year guidance.
- Adyen jumped 9.6% after upgrading its growth forecast.