European Stocks Set to Fall at the Open as Global Markets React Badly to Latest U.S. Inflation Data

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European markets are heading for a negative open on Wednesday as investors react to the latest inflation data out of the U.S.

August's surprisingly hot consumer price index showed thatInflation was broad last month, with shelter costs rising 0.7% for the month. New vehicle prices and medical care services increased 0.8% each.

And even as gas prices have declined, food prices continue to rise. The food at home index, a proxy for grocery prices, is up 13.5% over the past year. "The core inflation numbers were hot across the board. The breadth of the strong price increases, from new vehicles to medical care services to rent growth, everything was up strongly," said Mark Zandi, chief economist at Moody's Analytics."That was the most disconcerting aspect of the report."The three major averages are now on track for their worst day of 2022 as the market rout has deepened in the final hour.

 

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