European Stocks Slightly Lower On Inflation, Rate Hike Concerns

(RTTNews) - European stocks are broadly lower on Wednesday as investors digest the latest batch of economic data, and earnings update from the region, and also reacting to comments from some Federal Reserve officials about interest rate hikes.

UK consumer prices increased more than expected in March, logging an annual increase of 10.1%, remaining stubbornly high on rising food prices, and strengthening the call for a quarter point interest rate hike at the next Bank of England policy meeting in May.

Meanwhile, Eurozone inflation eased to a 13-month low in March, as initially estimated, driven by the fall in energy prices, final data from Eurostat showed on Wednesday.

The harmonized index of consumer prices registered an annual growth of 6.9%, slower than the 8.5% rise in February. A year earlier, inflation was 7.4%.

The pan European Stoxx 600 is down 0.23%. The U.K.'s FTSE 100 is lower by 0.2%, Germany's DAX is declining 0.16%, and France's CAC 40 is up marginally. Switzerland's SMI is down 0.13%.

In the UK market, Fresnillo, TUI, Antofagasta, Just Eat Takeaway.com, British Land Company, Anglo American Plc, Rightmove, Kingfisher and BP are down 2 to 4%.

Polymetal International is climbing more than 2.5%. Coca-Cola HBC, British American Tobacco and Imperial Brands are gaining 1.5 to 1.7%.

In Paris, WorldLine is up 2%, AXA is surging 1% and Engie is gaining about 1%. Vinci, Pernod Ricard, Bouygues, LVMH and Essilor are up with modest gains.

Renault is declining nearly 3%. ArcelorMittal and Vivendi both are down 2%. Eurofins Scientific, TotalEnergies and Alstom are lower by 1.7%, 1.2% and 1.1%, respectively.

In the German market, Deutsche Boerse, Hannover Rueck, Beiersdorf, Munich RE and Allianz are up 0.7 to 1.2%.

Zalando, Vonovia, Infineon Technologies, Siemens Energy and Daimler are down 1.3 to 2%.

A report from the European Central Bank said the eeuro area current account surplus increased to a 17-month high in February driven by goods trade.

The current account surplus increased to EUR 24 billion in February from EUR 19 billion in the previous month, the report showed. This was the highest level since September 2021.

New car sales in the European Union rose 28.8% year-on-year in March following an 11.5% growth in February, the Brussels-based European Automobile Manufacturers' Association, or ACEA said.

Federal Reserve Bank of St. Louis President James Bullard said Tuesday that he favored continued interest-rate hikes to counter persistent inflation. Bullard said recession fears are overblown.

"Wall Street's very engaged in the idea there's going to be a recession in six months or something, but that isn't really the way you would read an expansion like this," Bullard told Reuters in an interview.

Federal Reserve Bank of Atalanta President Raphael Bostic said he favors raising interest rates one more time than holding them above 5% for some time to curb inflation that remains too high.