European equities traded lower on Thursday as investors assessed the European Central Bank’s interest-rate increase, higher oil prices and continued tensions in the Middle East.
The U.K.’s FTSE 100 fell 0.6%, Germany’s DAX declined 0.4% and France’s CAC 40 was down 0.2%.
The ECB raised interest rates by 25 basis points, in line with market expectations. The central bank said the conflict in the Middle East continued to generate inflationary pressures and that inflation was expected to remain above its target for an extended period.
Brent crude futures moved above $105 a barrel following renewed attacks on tankers and concerns about potential supply disruptions.
U.S. Treasury yields also moved higher after rising on Wednesday. The U.S. Treasury increased the size of a long-dated debt buyback operation, although the increase was below the level some investors had expected.
German Inflation Reaches Four-Month High
Germany’s annual consumer price inflation accelerated to 2.9% in August from 2.8% in July, matching the initial estimate, according to Destatis. The August rate was the highest since April.
EU-harmonised inflation also increased to 2.9% from 2.8%, in line with the previous estimate.
Among individual stocks, Porsche (TG:P911) shares rose after the German sports car manufacturer completed the sale of its stakes in Bugatti Rimac and Rimac Group.
Currys (LSE:CURY) shares moved lower after the British electricals retailer maintained its annual outlook and reported a 7% increase in like-for-like sales for the 17 weeks to August 29.
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