European stocks open lower on U.S. inflation data

LONDON – European stocks are expected to open lower on Thursday as global markets falter as the latest U.S. inflation data shows consumer prices rose again in December.

British FTSE Germany is expected to open flat at 7,539 Dax Expected to open 11 points lower to 16,029, France CAC 40 Down 9 points to 7,222, Italy’s FTSE MIB It fell 31 points to 27,537, according to IG.

Global markets were digesting the latest U.S. inflation data on Wednesday, which showed December’s consumer price index, which measures the price of a wide variety of goods, According to the U.S. Bureau of Labor Statistics, an increase of 7%.

CPI rose 0.5% month-on-month. Economists expect the consumer price index to rise 0.4% in December and 7% from a year earlier, according to Dow Jones data.

Some economists think Inflation may show signs of peaking, and will therefore be closely watching long-term trends in this report.

While the CPI is not the Fed’s main inflation gauge, policymakers are eyeing a variety of measures as they begin the first phase of tightening the most accommodative policy measures in the Fed’s history.

Federal Reserve Chairman Jerome Powell told Senate lawmakers on Tuesday, He expects a rate hike This year follows the end of the monthly bond-buying program in March and a reduction in asset holdings. Powell said the moves may be needed to rein in inflation as the economy recovers sharply from the pandemic shock.

The December producer price index, another gauge of inflation, will be released on Thursday.

Large U.S. banks are also in the spotlight, kicking off the fourth-quarter earnings season on Friday. JPMorgan, Citigroup and Wells Fargo are scheduled to release quarterly results before the start of U.S. trading.

In Europe, Geberit’s earnings come from Geberit, while Tesco, Marks & Spencer and ASOS publish trading reports and publish consumer confidence data for the UK, France and Germany.

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— Jeff Cox of CNBC contributed to this market report.