Stocks bounce but inflation fears persist

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Global shares bounced in volatile trading on Friday with debate over the timing of future interest rate rises on both sides of the Atlantic intensified by euro zone inflation jumping to a 13-year high.

In Europe, it was a different picture with the STOXX 600 index"There's clearly still plenty of nerves in the markets at the moment, which is perfectly understandable under the circumstances," said OANDA analyst Craig Erlam.

With stellar economic growth figures now in the rear view mirror, markets are looking ugly going into October, Michael Hewson, chief markets analyst at CMC Markets, said. Consumer price inflation in the 19 countries sharing the euro accelerated to 3.4% year on year in September, from 3% a month earlier, the highest reading since the height of the global financial crisis in September 2008.

 

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