June 6, 2023

Dubai Week

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European shares closed mixed on absorbing British inflation data

European stock indexes were mixed in late trade on Wednesday, as investors absorbed mixed signals from U.S. Federal Reserve officials on inflation data and the path to raising interest rates.

The Stoxx 600 fell 0.1%, mining shares shed 1.3%, technology shares fell 1.9%, while insurance companies gained up to 1.1%.

The consumer price inflation index in the United Kingdom was 10.1% in March, down from 10.4% in February, which was expected to ease to 9.8%.

The data also showed that wage growth in the UK fell less than expected in the three months to March.

Atlanta Fed President Rafael Bostic said he sees another 25 basis point rate hike before the central bank pauses to see the impact of its policy on the economy. This will keep the central bank rate at 5% to 5.25%.

Bostic’s words came as St. Louis Federal Reserve President James Bullard said he favors a rate hike of 5.50% to 5.75%.

At the end of the session, the British FTSE 100 index fell 0.1% or 10 points to 7898 points, the French CAC index rose 0.2% or 16 points to 7549 points, the German DAX rose 0.1% or 12 points to 15,895 points and the Stoxx 600 fell 0.1% to 468 points.

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