European Markets Sink Despite Weaker US Inflation Data

European markets opened lower on Thursday, defying expectations of a boost from weaker-than-forecast US inflation data. The Stoxx 600 index dipped by 0.90% to 629 at 0717 GMT, with all major markets tracking downward.

The personal consumption expenditures price index, the Federal Reserve's preferred measure of inflation, rose 0.3% month on month and 3.4% annually in August, missing forecasts of 0.3% and 3.7%, respectively. July's reading was also revised downwards, reducing bets on a Fed rate hike this month.

Despite the data, analysts noted that it is old and does not reflect September's surge in diesel prices. US President Donald Trump's continued involvement in the Iran conflict has also weighed on sentiment, contributing to inflationary pressures.