European Stocks Close Lower After U.S. Inflation Data

(RTTNews) - European stocks closed lower on Wednesday, with investors reacting to eurozone industrial production data, and U.S. inflation report.

Data from Eurostat showed that Eurozone industrial production fell more than expected in July. Industrial output fell 1.1% month-on-month, versus -0.7% expected and a 0.4% increase reported in June.

Elsewhere, data out of U.K. showed the British economy shrank at the fastest pace in seven months.

Real gross domestic product fell 0.5% in July, offsetting June's 0.5% increase, the Office for National Statistics reported. The latest figure was worse than economists' forecast of 0.2% decline.

Data from the Labor Department showed the consumer price index climbed by 0.6% in August after inching up by 0.2% in July. The price growth matched expectations. Excluding food and energy prices, core consumer prices rose by 0.3% in August after edging up by 0.2% in July. Economists had expected another 0.2% uptick.

The Labor Department also said the annual rate of consumer price growth accelerated to 3.7% in August from 3.2% in July. The annual rate of growth was expected to accelerate to 3.6%.

While the data has reinforced expectations the Federal Reserve will leave interest rates unchanged, many economists feel the slightly bigger than expected monthly increase in core prices leaves the door open for another rate hike before the end of the day.

The pan European Stoxx 600 ended down 0.32%. The U.K.'s FTSE 100 edged down 0.02%, Germany's DAX settled 0.39% down, and France's CAC 40 dropped 0.42%, while Switzerland's SMI closed lower by 0.1%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Iceland, Ireland, Netherlands, Norway, Portugal, Russia, Spain, Sweden and Turkiye closed lower. Poland ended flat.

In the UK market, IAG, BP, JD Sports Fashion and Halma ended lower by 2 to 3%. Croda International, Carnival, TUI, Next, Flutter Entertainment, Severn Trent and Fresnillo lost 1 to 1.9%.

Aviva gained about 4.6% after the British insurer said it is exiting its Singlife joint venture, selling its 25.9% stake in Singapore Life Holdings and two debt instruments pounds to Sumitomo Life for a combined 800 million pounds ($996.96 million).

Melrose Industries gained 4.6% and Persimmon rallied 4%. Taylor Wimpey, Berkeley Holding, Barclays, HSBC Holdings, Barratt Developments, Ds Smith, Whitbread and Prudential gained 1.8 to 2.5%.

In the German market, Bayer dropped 4.7%. Adidas ended nearly 2% down, while Siemens Healthineers, Siemens and Daimler Truck Holding drifted down 1.2 to 1.5%.

Deutsche Bank climbed nearly 3%. MTU Aero Engines gained about 2.7%, while Sartorius, Fresenius Medical Care, Siemens Energy and Commerzbank gained 1 to 2%. BMW advanced 0.75%.

In Paris, Alstom ended nearly 4% down. ArcelorMittal, Legrand, Saint Gobain, Capgemini, Carrefour, Vinci and Dassault Systemes lost 1 to 2.2%.

Renault rallied more than 2% after the European Commission, the executive arm of the European Union, launched an investigation into subsidies given to electric vehicle makers in China. European Commission President Ursula von der Leyen said Europe was "open to competition but not for a race to the bottom."

AXA gained about 1.6%. Publicis Groupe, Societe Generale, Credit Agricole and Eurofins Scientific gained 0.6 to 1%.

Spanish retailer Inditex shares recovered after a sharp plunge and ended marginally down. The company reported a 40% jump in half-year net profit.