© Archyde.com. Electronic screens showing stock trading at the Frankfurt Stock Exchange, Germany, on Wednesday. Archyde.com photo.
(Archyde.com) – European shares fell on Wednesday, extending losses from the previous session, following higher-than-expected inflation data in the United States boosted expectations for another big interest rate hike from the U.S. Federal Reserve, but gains in oil stocks capped declines.
The European index ended the trading session down 0.9 percent. Mining, industrial and consumer goods stocks were among the biggest losers.
Tuesday’s data showed a larger-than-expected increase in US consumer prices in August, which bolstered the argument that the US central bank will decide the third consecutive increase of 75 basis points in interest rates at the conclusion of its meeting next Wednesday.
Markets were hit hard following the data and European stocks failed to benefit from the recovery of Wall Street in Wednesday’s session.
The European energy sector bucked the market trend, with its index rising 0.8 percent, with a rise following the International Energy Agency said it expected an increase in the switch from gas to crude due to higher prices this winter.
The index of retail stocks also rose 0.8 percent, with Zara brand owner Inditex registering 3.8 percent, following announcing a 24.5 percent jump in six-month sales and a year-on-year profit rise.
(Prepared by Wagdy Al-Alfi for the Arabic Bulletin)
