European markets falter following upbeat US inflation data

The Irish market was weaker on Thursday, similar to European markets across the board as better-than-expected US inflation data overshadowed a slowdown in the labour market.
The Iseq was down 0.96 per cent. Kingspan fell 1.60 per cent to €80 a share. Ryanair fell 0.92 per cent to €16.74. In the food groups, Kerry Group rose 1.19 per cent to €93.65 and Glanbia rose 0.80 to €15.16 a share.
In banking, AIB dropped 0.3 per cent to €5.06, Bank of Ireland fell 0.3 to €9.20 and Permanent TSB finished flat on the day at €1.65. Housebuilders Cairn Homes dropped 2.88 per cent to €2.02 a share and Glenveagh Properties were down 0.25 to €1.59 a share.
The UK’s main stock indexes slipped on Thursday as some of the companies traded without the entitlement of their dividend payouts, while GSK shares jumped following the settlement of its lawsuits in the US.
The blue-chip Ftse 100 index was down 0.1 per cent, while the mid-cap ftse 250 fell 0.6 per cent.
Tesco, WPP, Taylor Wimpey and Kingfisher dragged the benchmark index lower, falling between 1.4 per cent-5 per cent, as they traded without entitlement to their latest dividend payout.
The household goods and home construction sector extended its weakness for a fourth straight session, down 2.5 per cent, and led declines.
GSK surged 2.3 per cent after it agreed to pay up to $2.2 billion to settle most lawsuits in US state courts claiming that a discontinued version of the heartburn drug Zantac caused cancer.
Gains in the drugmaker pushed the broader pharma and biotech index higher by 0.8 per cent.
European stocks fell on Thursday, as hotter-than-expected US inflation data overshadowed a sharp slowdown in the labour market.
The Stoxx Europe 600 Index ended the session 0.2 per cent lower, extending losses after US inflation rose more than forecast. The reading amplifies the debate on whether the Federal Reserve will opt for a small interest-rate cut next month or pause after a large September reduction.
Technology and industrial stocks lagged the broader market, while insurers outperformed as analysts said costs related to Hurricane Milton may be less than initially feared. Spanish stocks also fell, weighed down by utilities firms.
The Stoxx 600 has slipped 1.7 per cent since reaching a record high at the end of September, and is slightly negative so far this month.
Wall Street opened lower on Thursday as positive September inflation data reinforced expectations of a 25-basis-point rate hike by the Federal Reserve at its upcoming meeting.
The closely watched Consumer Price Index rose 0.2 per cent on a monthly basis and 2.4 per cent on an annual basis, with both figures being slightly higher than estimated by economists Reuters polled.
The core figure, which excludes volatile food and energy prices, rose 3.3 per cent year-over-year, versus an estimated 2.3 per cent.
The Dow Jones Industrial Average fell 0.18 per cent, the S&P 500 lost 0.27 per cent and the Nasdaq Composite lost 0.38 per cent.
After the inflation data was released, traders firmed bets on a 0.25 per cent cut in November at 86.9 per cent with a 13.1 per cent chance of no change at all, according to CME’s FedWatch.
“The market’s reacting because you’re pricing out the possibility of big Fed rate cuts and the risk that the Fed isn’t going to be as supportive to markets,” said Cameron Dawson, chief investment officer at NewEdge Wealth.
However, weekly jobless claims also rose to 258,000 for the week ending October 5th, versus an estimate of 230,000.
“The CPI data coming in hotter than expected, and at the same time [that] initial jobless claims really picked up, is certainly a confusing message for markets,” Dawson said. – Additional reporting: Agencies