Inflation Readings Dampen European Market Sentiment

(RTTNews) - European stock markets followed Asian and Wall Street peers to tread in the red zone as renewed anxiety surrounding inflation and a painful inflation combat drowned world markets. The major European benchmarks capitulated amidst economic data that highlighted the persisting inflation and the challenges to growth. Data released earlier in the day showed inflation in the Euro area touching a record high of 9.1 percent.

U.K.'s FTSE 100 is 1.13 percent below the previous closing level of 7,361.63. It is currently trading at 7,278.20. In the 100-scrip index, 59 scrips are in negative territory.

France's CAC 40 index's current level of 6,170.15 is 0.65 percent below the previous close of 6,210.22. Of the 40 scrips in the index, 27 are trading below Tuesday's levels.

Germany's DAX is currently trading at 12,919.78, losing 0.32 percent from Tuesday's close. 26 of the 40 scrips have declined since the previous close.

The pan-European Stoxx 600 shed 0.36 percent from the previous close and is currently trading at 418.29.

Switzerland's Stock Market Index has however gained from the previous close and is currently trading at 10,897.72, rising 0.12 percent overnight.

The EURUSD pair is currently hovering near 0.9994 whereas the GBPUSD pair is near 1.1626.

On Tuesday also, European markets had traded mostly lower, amidst concerns over inflation and rate hikes. U.K.'s FTSE 100 had dropped 0.88 percent whereas the pan-European Stoxx 600 declined 0.67percent. France's CAC 40 had declined 0.19 percent while Switzerland's SMI had moved down 0.11 percent. Germany's DAX however had added 0.53 percent.

The Wall Street had closed with losses on Tuesday amidst strong job openings data that reinforced the likelihood of a more hawkish Fed. Job openings in the U.S. increased to 11.2 million in July, versus 11.04 million in the previous month amidst market expectations of a drop to 10.45 million. Nasdaq-100 lost 1.13 percent to close at 12,342.70 and the Dow Jones Industrial Average lost 0.96 percent to end at 31,790.87.