Euro Stocks Plateau Amid US Inflation Fears and Iranian Tensions
The European stock markets remained directionless on August 26 as investors mulled over developments in Iran and US monetary policy. The FTSE 100 posted its first modest decline in seven sessions, while the mid-cap FTSE 250 index rose 0.17%. Healthcare and oil stocks took a hit, but consumer staples and tobacco shares fared better.
The July Personal Consumption Expenditures (PCE) price index rose 3.7% year-over-year in the US, exceeding market expectations of 3.6%. This strengthened the case for a Federal Reserve rate hike in September, which weighed on European markets overall.
Banks were among the gainers, with Deutsche Bank rising 4.3% and Commerzbank gaining 2.8%. The German Finance Minister is expected to meet with UniCredit's top executive regarding the Italian banking giant's potential acquisition of Commerzbank.