European stocks open mixed before US inflation data

September 14, 2021: European stock markets diverged at the open Tuesday, with all eyes on the latest US inflation data as recent surges of global prices risk derailing the economic recovery.

London's benchmark FTSE 100 index dropped 0.3 percent to 7,050.99 points, as investors reacted also to the release of mixed UK unemployment figures.

In the eurozone, Frankfurt's DAX 30 index gained 0.1 percent to 15,716.11 points and the Paris CAC 40 lost 0.3 percent to 6,658.59.

Markets were waiting to see whether Tuesday's update on US consumer prices would amplify or mitigate worries about soaring inflation.

The Federal Reserve has argued that sharp price increases are transient and do not require an abrupt shift in monetary policy, such as sudden tapering of huge financial stimulus that has supported economies through the pandemic.

Central banks could also raise interest rates to tame runaway prices, increasing the cost of the vast borrowing carried out by governments during the Covid outbreak.

AFP/APP

Posted on: 2021-09-14T13:26:24+05:00

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