European stocks dip as high inflation concerns linger

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European stock markets eased as investors took profit from the gains notched up the previous day on better-than-expected inflation data in the US.

File: The stock tickers and financial display are pictured at the headquarters of the Pan-European stock exchange Euronext.LONDON - European stock markets eased on Thursday as investors took profit from the gains notched up the previous day on better-than-expected inflation data in the US.

The head of the Minneapolis Federal Reserve Bank, Neel Kashkari, warned:"We are a long way away from saying that we're anywhere close to declaring victory". "Investors are certainly in a more upbeat mood as the relief from the US inflation data ripples through the markets," said OANDA analyst, Craig Erlam.

Investors will therefore be watching out for further comments from policymakers over the next weeks to better gauge the likely pace of further rate hikes, as strong jobs growth shows how resilient the economy remains in face of higher borrowing costs and inflation.

 

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