All calm in European markets on eve of US inflation announcement

LONDON – European stock markets steadied at the start of trading today, with traders sitting tight on the eve of key US inflation data.

London’s benchmark FTSE 100 index was almost unchanged at 7,481.15 points.

In the eurozone, Frankfurt’s DAX index dipped 0.1% to 13,670.88 points and the Paris CAC 40 was flat at 6,522.13.

All eyes were on the latest US inflation data due tomorrow for clues on the pace of future interest rate hikes from the Federal Reserve.

Swissquote Bank analyst Ipek Ozkardeskaya said the recent drop in energy and commodity prices “should have a cooling effect on inflation, yet, higher labour costs could keep inflation sticky at undesirably high levels”.

The Fed and other central banks have aggressively hiked interest rates this year in a bid to cool decades-high inflation. – AFP, August 9, 2022