Major European Markets Close Higher

European stocks closed higher on Wednesday despite spending much of the day’s session in negative territory as investors reacted to a slew of earnings announcements and U.S. inflation data.

Fears about liquidity woes spreading in China’s property sector weighed on sentiment.

Data released by the Labor Department showed the consumer price index in the U.S. jumped by 0.9% in October after rising by 0.4% in September. Economists had expected consumer prices to climb by 0.6%.

The Labor Department also said the annual rate of growth in consumer prices accelerated to 6.2% in October from 5.4% in September, reaching the highest level since November of 1990.

The acceleration in the rate of consumer price inflation raised concerns about the outlook for interest rates even though the Federal Reserve has signaled it will not be in a hurry to begin raising rates.

While the major markets closed on a positive note, most of the other markets in the region ended weak.

The pan European Stoxx 600 gained 0.22%. The U.K.’s FTSE 100 climbed 0.91%, Germany’s DAX advanced 0.17% and France’s CAC 40 edged up 0.03%. Switzerland’s SMI surged up 0.27%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Greece, Iceland, Ireland, Poland and Russia ended with sharp to moderate losses.

Finland and Netherlands declined marginally, while Norway, Portugal, Spain, Sweden and Turkey closed higher.

In the UK market, ITV shares soared more than 15% after the company said 2021 advertising revenue will hit record levels.

Shares of retailer Marks & Spencer zoomed more than 17% after the group raised its annual profit outlook for the second time in less than three months.

Pearson, Fresnillo, Smiths Group, B&M European Value Retail, Next, JD Sports Fashion, Polymetal International, Kingfisher, Aviva, Taylor Wimpey, Associated British Foods, National Grid, Tesco, Berkeley Group Holdings and Hargreaves Lansdown gained 2 to 3.6%.

Aveva Group declined 3.6%. Darktrace shed about 1.7%, while Intercontinental Hotels and Burberry Group drifted down 1.25% and 1%, respectively.

In the French market, Carrefour climbed 3.5%. Renault, Orange, Publicis Groupe, Vivendi, Atos, Safran, AXA, Sanofi and Danone gained 1 to 2.3%.

Credit Agricole shed nearly 2% despite delivering better-than-expected profit on lower pandemic-related provisions for bad loans.

Kering, STMicroElectronics, Capgemini, Saint Gobain, Dassault Systemes, ArcelorMittal, Bouygues, Essilor and LVMH lost 1 to 2.3%.

In Germany, Brenntag, RWE, Continental, E.ON, Allianz, Bayer, BMW, Fresenius Medical Care and HeidelbergCement gained 1 to 2.3%.

Adidas declined more than 3%. After posting third-quarter sales slightly below expectations, the sportswear company pared full-year sales and profit forecasts.

Sartorius, Zalando, Infineon Technologies, Deutsche Post and Merck lost 1 to 2%.

LEONI, a cable and harnessing manufacturing firm, slumped 12.5% despite maintaining its full-year guidance.

In European economic news, Germany consumer price inflation rose at the fastest pace since 1993 on energy prices, final data from Destatis revealed on Wednesday.

Consumer price inflation advanced to 4.5% in October, as initially estimated, from 4.1% in September. A higher inflation rate of 4.6% was last measured in August 1993.

On a monthly basis, consumer prices gained 0.5% in October. The rate came in line with the estimate published on October 28.

The harmonized index of consumer prices grew 4.6% on year, as estimated, after climbing 4.1% in September.