European Markets Close Up After Wild Swings, German Inflation Jumps to 10%

Bridgette Randall
13 Oct, 2022
Frankfurt

European indexes closed up after a wild day that saw indexes plunging as much as 1.5%, after the release of the U.S. consumer inflation data. 

Geopolitical tensions stayed high after Russia intensified its bombing campaign in Ukraine. 

The market decline was sharp and brief after energy and resource stocks led the rebound in the region following the rise in New York. 

The UK bond market turmoil continued after reports suggested that the government is likely to reverse most of the tax proposals. 

The expectations of tax reversal supported a rally in the UK gilt market and also lifted the British pound for the second day in a row. 

German Inflation Jumped to 10%

Consumer price inflation accelerated to 10.0% in September from 7.9% in August, according to final data reported by Destatis on Thursday. 

Excluding food and energy prices, inflation increased to 4.6%. 

Energy prices surged 43.9% and food prices rose 18.7% from a year ago and the ending of 9-euro tickets and a fuel discount fueled the price surge in September. 

Goods prices jumped 17.2% and services prices gained 3.6% in the month.   

Volatile Markets Closed Higher 

The DAX index increased 1.5% to 12,355.58, the CAC-40 index added 1.04% to 5,879.19 and the FTSE 100 index advanced 0.4% to 6,850.27. 

The Swiss benchmark SMI added 0.3% or 28.58 to 10,227.92 after volatile trading. 

The euro edged up 0.8% to 97.78 U.S. cents and the pound jumped 2.2% to $1.135. 

Stock Movers

Oxford Instruments Plc gained 7.7% to 1,854.0 pence after the high-tech company sounded optimistic about first-half results. 

Banks in Switzerland closed up following the surge in the sector across Europe ahead of earnings. 

Credit Suisse jumped 6.5% and UBS Group increased 3.5%. 

Suedzucker AG closed down 2.7% to