European indices close higher despite US inflation data

Wednesday, January 12, 2022 - 18:41
Point Trader Group
European indices close higher despite US inflation data

The pan-European Stoxx 600 Index closed 0.7% higher, with the basic resources sector up 3.2% to lead the gains, while healthcare shares declined 0.7%.

French electrical parts supplier Rexel saw its shares rise 10.3%, topping the Stoxx 600 list after raising its forecast for the whole of 2021.

At the bottom of the European index, Dutch health tech giant Philips fell almost 15.5%, after issuing a warning about fourth-quarter earnings due to parts shortages and rising supply costs.

In Asia, the Japanese Nikkei stock index rose at the close of Wednesday's trading session, to close with a gain of about 2%, and the Chinese Shanghai Composite Index closed with gains of 0.8%.

On the other hand, the Consumer Price Index in America rose by 7% during the month of December last year on an annual basis, which means that annual inflation recorded the fastest rise in nearly 40 years.

On Tuesday, US Federal Reserve Chairman Jerome Powell said that the economy is healthy and needs tighter monetary policy, which is likely to entail raising interest rates, reducing asset purchases and shrinking the balance sheet.

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