European stock indices closed with growth

European stock indexes closed higher on Thursday, with investors around the world speculating on the latest inflation and earnings data from the U.S.

 

The pan-European Stoxx 600 index rose 1.2% by the close, with core resources adding 3.3%, leading to gains as all sectors completed in positive territory.

 

Global investors digested the latest U.S. inflation data, which rose higher than expected in September, rising pressure on the Federal Reserve to raise rates sooner rather than later.

 

The U.S. consumer price index jumped 0.4% in September from the previous month and 5.4% year-on-year, the Labor Department said Wednesday. Economists had expected to see monthly growth of 0.3% or 5.3% year-on-year, according to Dow Jones data.

 

The minutes of the September meeting of the Federal Open Market Committee, published on Wednesday afternoon, showed that the central bank could begin to curtail its asset purchase program as early as mid-November.

 

In the U.S., stocks rose after strong results from large companies. Shares of Bank of America, Morgan Stanley, Citigroup and Wells Fargo rose after breaking earnings expectations.

 

As for individual stock price movements, shares of SoftBank-backed British e-commerce company THG rose 10.6%, trying to recover from a sharp drop earlier in the week after a bad day in capital markets.

 

Closer to the bottom of the European blue-chip index, Danish biology company Chr Hansen fell 6.7% after falling short of third-quarter earnings expectations.

 

Danish medical company Demant fell 4.9% after voluntarily recalling its cochlear implant business.