The European STOXX 600 falls for the seventh day; US CPI data is being watched

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October 13 (Reuters) –

Europe’s STOXX 600 index fell for a seventh day on Thursday, led by tech and real estate stocks, as investors focused only on U.S. inflation data due later in the day to gauge the rate hike trajectory of the Federal Reserve.

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The regional index was down 0.5% at 0810 GMT, and on pace with its longest losing streak since early February 2018, if losses continue.

The index has fallen nearly 4.3% in the past six days as markets fret over aggressive central bank policy moves to tackle high inflation and recent warnings from the International Monetary Fund and the Bank world regarding a recession.

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The latest data confirmed that German harmonized inflation was +10.9% year-on-year in September, while consumer prices (CPI) in Sweden, measured with a fixed interest rate, increased by 1 .1% compared to August.

All eyes are on US CPI data due at 12:30 GMT.

Minutes from the last U.S. Fed meeting showed that many officials “stressed that the cost of taking too little action to reduce inflation likely outweighed the cost of taking too much action.”

« There’s jitters ahead of the US CPI data, especially given yesterday’s Fed minutes showing policymakers are hyper-focused on curbing inflation with the warning that rates will higher will persist longer, » said Susannah Streeter, senior investment and market analyst, Hargreaves Lansdown.

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London’s FTSE 100 fell 0.5% amid heightened concerns over British Prime Minister Liz Truss’ economic plans and the bond market turmoil it sparked that pushed the Bank of England to intervene.

And with the third-quarter earnings season on the horizon, investors are now focused on how European corporate management forecasts earnings prospects at a time when continent-wide inflation is at an all-time high. and that a recession is expected.

“The effects of inflation and expected economic contractions on buyer caution should continue to weigh on consumer discretionary stocks, particularly retail, travel and hospitality,” Streeter said.

China’s rising COVID rates show that the pandemic is not entirely in the rear view mirror and a new front erupting in the US-China ‘chip wars’ also risks further problems down the chain. procurement, especially for the automotive technology and manufacturing sectors. »

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European semiconductor companies fell after chip-making technology provider Applied Materials Inc said export curbs to China would result in a $250-550 million loss in net sales during the quarter ending October 30, with a similar impact expected in the following three months.

Shares of Infineon, ASML, ASMI, BESI and Aixtron slipped between 1.2% and 3.2%

Aroundtown fell 6.3% after Citigroup downgraded the real estate group’s shares to « neutral » from « buy ».

British homebuilder Taylor Wimpey fell 5.2% as it traded ex-dividend.

Norwegian aluminum producer Norsk Hydro jumps 5.6%

after reports

that the United States was considering restricting imports of Russian aluminum. (Reporting by Devik Jain in Bengaluru; Editing by Uttaresh.V and Neha Arora)