Global Stocks Muted Amid Eurozone Inflation Surges

Global stock markets were largely flat on Wednesday as traders absorbed news of surging inflation in several European countries, particularly at petrol pumps.

The Paris and Frankfurt exchanges both sank after France, Germany, and Italy reported significant price increases. France's annual inflation rate reached its highest level since February 2024, while Italy's inflation rate was 4.2 percent, nearly a full percentage point above August's rate.

Analyst Fawad Razaqzada noted that the economic releases from the eurozone have done little to improve the outlook, with rising inflation and weakening sentiment reinforcing concerns about stagflation.

Oil prices remained high on Wednesday, slightly up from the previous day, fuelling global inflation and multi-decade highs in bond yields. London's FTSE 100 ticked up after data showed the UK economy grew more than initially estimated in the second quarter.