European Stocks Sink as Inflation Hits Multi-Year Highs
European stocks closed lower on Wednesday as inflation accelerated in the region's three largest economies. The pan-European Stoxx Europe 600 index finished 0.5% down, with all major indices registering losses.
The annual consumer price growth picked up in Germany, France, and Italy in September, reaching multi-year highs. German inflation rose to 3.3% from 2.9%, while French inflation increased to 3.4% from 2.6%. Italian inflation jumped to 4.1% from 3.2%, with data from France and Italy ahead of analysts' expectations.
Oil prices rebounded due to ongoing supply concerns in the Middle East, with Brent crude futures up 2.6% at $98.61 a barrel after US President Donald Trump denied reports of easing sanctions on Tehran. A Houthi attack on an oil processing facility in Saudi Arabia also lifted prices.
Some stocks bucked the trend, however, including Norwegian defense firm Kongsberg Gruppen, which signed a contract worth $1.04 billion with Belgium for its National Advanced Surface-to-Air Missile Systems air defence systems. UK high street bakery chain Greggs surged after unveiling plans to overhaul its manufacturing operations, potentially leading to over 700 job losses.