European markets close lower as traders assess inflation; Italy's FTSE MIB down 3.3%
- Italy's FTSE MIB index closed down 3.3% after of a parliamentary confidence vote that could potentially trigger the collapse of the coalition government.
- Investors are still reacting to hotter-than-expected U.S. inflation data Wednesday.
LONDON — European stocks closed lower on Thursday as global markets digested the latest U.S. inflation data.
The pan-European Stoxx 600 index was down 1.4% by the end of the session, with most sectors in negative territory apart from travel and leisure stocks.
Italy's FTSE MIB index closed down 3.3% after of a parliamentary confidence vote that could potentially trigger the collapse of the coalition government.
Investors are still reacting to hotter-than-expected U.S. inflation data Wednesday. The consumer price index, a broad measure of everyday goods and services, soared 9.1% in June from a year ago, and above the 8.8% Dow Jones estimate. That marked another month of the fastest pace for inflation going back to December 1981.
The reading could prompt the Federal Reserve to hike interest rates by another 75 basis points during this month's meeting. Last month, the Fed raised its benchmark interest rates three-quarters of a percentage point to a range of 1.5%-1.75% in its most aggressive hike since 1994.
On Wall Street, stocks traded lower as investors reacted to the inflation numbers. Also in the U.S. Thursday, JPMorgan Chase said that second-quarter profit slumped as the bank built reserves for bad loans by $428 million and suspended share buybacks.
Mainland China markets led gains in Asia-Pacific on Thursday as Australia's unemployment rate fell and Singapore tightened its monetary policy.
— CNBC's Jeff Cox contributed to this market report.