European Stock Markets Fall Amid Rising Eurozone Inflation

Investing.com – European stock markets fell Thursday as investors processed corporate quarterly results and the latest eurozone inflation data.

At 11:00 ET (15:00 GMT), the DAX index in Germany traded 1.3% lower, the CAC 40 in France fell 1.4%, and the FTSE 100 in the U.K. dropped 1%.

Eurozone CPI Rises More Than Expected

Eurozone inflation accelerated more than anticipated in October, rising to 2.0% year-over-year, up from 1.7% in September, surpassing expectations of 1.9%.

Another key figure, excluding volatile food and energy prices, held steady at 2.7%, above forecasts of 2.6%, according to Eurostat.

The European Central Bank (ECB) has cut interest rates three times this year, the last cut made at its October meeting, marking the first consecutive cuts since the euro crisis in 2011. It is expected that monetary policy will be eased again during the next meeting; however, these inflation figures may support a cautious approach as price growth remains uncontained.

ECB President Christine Lagarde noted that inflation is likely to durably reach its 2.0% target by 2025. In an interview, she said: "Maybe we could have started to intervene a few months earlier. But we raised rates at an unprecedented rate, and we managed to bring inflation down significantly over a short period. Now I want to see that 2% target achieved on a lasting basis. In the absence of a major shock, this will be the case in the course of 2025."

Shell Announces More Buybacks

Turning to corporate results, several major companies released their quarterly earnings.

Shell (LON:SHEL) shares rose by 3% after reporting a third-quarter profit of $6 billion, exceeding expectations, and announcing an additional $3.5 billion in share buybacks.

BNP Paribas (OTC:BNPQY) shares fell over 5% after the eurozone’s largest lender needed higher trading activity in its investment banking division to meet profit targets amid lending challenges.

Stellantis (NYSE:STLA) shares increased by 2.2% as the car manufacturer reported moves to quickly reduce US inventories, despite a 27% drop in quarterly revenues.

AB Inbev (EBR:ABI) shares dropped over 6% as the brewing giant reported a decline in third-quarter volumes and sales in the Asia Pacific, although share buyback and improved guidance provided some support.

Smith & Nephew (LON:SN) shares fell over 12% after the UK-based medical equipment maker lowered its full-year revenue guidance, attributing it to weakness in the critical Chinese market.

Across the ocean, both Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) surpassed profit and revenue expectations for the July-September period, though they also highlighted increased spending on AI data centers to meet growing demand.

Crude Prices Rise on Inventories Draw

Oil prices increased Thursday, building on gains from the previous session after an unexpected draw in U.S. inventories indicated strong demand in the U.S., the world’s largest consumer.

By 11:00 ET, the Brent contract rose 1.2% to $73.03 per barrel, while U.S. crude futures (WTI) traded 1.3% higher at $69.52 per barrel.

Both contracts had gained more than 2% on Wednesday after falling over 6% earlier in the week due to reduced concerns about a broader Middle East conflict.

Moreover, U.S. gasoline stockpiles unexpectedly fell to a two-year low in the week ending Oct. 25, according to the Energy Information Administration, while crude inventories also experienced a surprise decrease.