FRANKFURT, Sept 1 ― European stocks fell yesterday as a spike in inflation caused jitters about a possible shift in monetary policy, but nevertheless rose nearly 2 per cent in August on strong quarterly earnings and optimism over an economic recovery.
Regional stocks had shed early gains yesterday after data showed inflation surged to a 10-year high in August, with further rises likely challenging the European Central Bank's benign view on price growth. Basic resources stocks were the worst performers in August, down 4.2 per cent as wild swings in metal prices saw investors pull out of the sector, which has otherwise performed well through the year.
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