European stocks struggled for direction on Wednesday as a relentless surge in commodity prices fueled worries about inflation spiraling out of control.
The downside, however, remained limited as expectations for Fed tightening pulled back somewhat after weak U.S. factory production data.
Two-year Treasury yields retreated sharply overnight, signaling a scaling back of bets for Fed rate hikes.
The pan European Stoxx 600 was up 0.1 percent at 469.17 after rising 0.3 percent in the previous session.
The German DAX edged up 0.2 percent, while France’s CAC 40 index slipped 0.1 percent and the U.K.’s FTSE 100 was marginally lower.
ASML Holding shares declined 1.6 percent. The Dutch chip equipment maker reported third-quarter revenue that fell short of expectations.
Paints and coatings maker Akzo Nobel gave up 1.5 percent after reporting a fall in third-quarter net profit.
Nestlé rallied 3.5 percent as the Swiss food giant reported higher sales for the first nine months of the year and lifted its full-year guidance for organic sales growth.
Luxury goods group Kering fell nearly 4 percent in Paris amid signs of slowing growth at Gucci, its biggest brand.
Mining giant BHP dropped nearly 2 percent in London after raising its offer for Canadian nickel explorer Noront Resources by $128 million.
Antofagasta slumped 4.4 percent after the mining group reported weak copper production for the third quarter and forecast lower output for next year.
Food delivery company Deliveroo jumped 4 percent after upgrading its full-year forecast.
In economic releases, German producer prices increased 14.2 percent year-on-year in September after rising 12 percent in August, Destatis reported. Prices were expected to gain 12.7 percent.
This was the highest growth since October 1974, when prices surged 14.5 percent amid the first oil crisis.
U.K. consumer price inflation slowed slightly to 3.1 percent from 3.2 percent in August, official data showed while economists had forecast the rate to remain unchanged at 3.2 percent.
The euro area current account surplus fell to EUR 13 billion in August from EUR 23 billion in July, the European Central Bank said.
Eurostat’s final CPI reading for September came in at 3.4 percent on a yearly basis, in line with the flash estimate of 3.4 percent and 3.4 percent expected.
Market Analysis
European Shares Little Changed Amid Inflation Concerns
2021-10-20 09:42:05
