Shares climb despite inflation flashing red for investors

The Stoxx-600 index closed up 1.3%
Shares climb despite inflation flashing red for investors

All of the Stoxx-600 index sectors ended the day in positive territory.

European shares climbed on Friday but saw sharp losses during a quarter marked by rising interest rates and tumbling risk sentiment, with hot inflation data from the region keeping investors on edge.

The Stoxx-600 index closed up 1.3% but had briefly pared some session gains after data showed eurozone inflation zoomed past forecasts to 10% in September, hitting a new record high.

The inflation numbers fuelled expectations of another super-sized interest rate hike from the European Central Bank. 

"It's only a small consolidation but it's a step in the right direction. It's hard to know if we have reached the absolute low," said Michael Baker, head of online services at Oval Money. "Until inflation comes under control, you'll see a kind of unease (in markets)."

All of the Stoxx-600 index sectors ended the day in positive territory, with bargain hunting driving gains among beaten-down retailers, oil and gas, and bank stocks. In Ireland, Bank of Ireland, up 5%, was one of the largest gainers, clawing back some of the sharp losses in the past week.             

The Stoxx-600 index has fallen 4.8% during the July-September period marking its third straight quarterly decline in what will be its longest such losing streak since 2011.

Markets have been roiled since the Russia-Ukraine war earlier this year jolted the region and sent gas prices soaring, leading to rampant inflation. 

Reuters and Irish Examiner

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