European markets weight US inflation data, earnings

LONDON – European stocks rallied Thursday as investors around the world ponder the latest inflation data and earnings from the US

The pan-European Stoxx 600 climbed 0.8% in early trading, with basic commodities adding 2.2% to lead gains as all sectors and major exchanges entered positive territory.

Global markets are digesting recent US inflation data, which rose higher-than-expected in September, adding pressure to the Fed to hike rates sooner rather than later.

The US consumer price index rose 0.4% month-over-month in September and 5.4% year-over-year, the Labor Department reported Wednesday. According to the Dow Jones, economists were expecting a month-on-month increase of 0.3%, or an annualized rate of 5.3%.

The minutes of the September meeting of the Federal Open Market Committee, published on Wednesday afternoon, showed that the central bank could begin to curb its asset purchase program as early as mid-November.

Also in focus is the third quarter earnings season, which began Wednesday with JPMorgan Chase; The bank reported that quarterly earnings exceeded expectations after loan defaults turned out to be better than expected. Bank of America, Citigroup, Morgan Stanley and Wells Fargo are all expected to report their winnings before Bell Thursday.

In the Asia-Pacific region, stocks were mostly higher overnight as investors reacted to the release of China’s September inflation data showing that September’s producer price index was up 10.7% year over year, slightly above Expectations of a Reuters poll of 10.5%. Increase. US stock futures rose in early pre-trading hours on Thursday.

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With CNBC’s coverage in mind on Thursday, Russian Energy Week continues and we will interview Russian Deputy Prime Minister Alexander Novak, former Energy Minister, this morning.

On Wednesday, CNBC hosted a panel with Russian President Vladimir Putin and the CEOs of BP, TotalEnergies, ExxonMobil and Daimler on topics from gas to geopolitics.

Putin told CNBC that Europe’s energy crisis was largely self-caused, and said Russia was ready to increase supplies to the region upon request.

In terms of individual share price movement, SoftBank-backed UK e-commerce company THG rose more than 8% in early trading and began to rebound from a 35% decline on Tuesday after a failed capital markets day.

At the lower end of the European blue chip index, Danish healthcare company Demant lost 4.1% after a voluntary recall of its cochlear implant business.

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