Europe’s Markets Wobble as US Inflation Beats Expectations

London’s share exchange finished with a blend of gains and drops on August 26. Health‑care and energy names saw selling pressure, while everyday consumer staples and tobacco stocks drew buyers. The big FTSE 100 index slipped a little, marking its first modest drop in a week. The mid‑cap FTSE 250, however, edged up about 0.2%.

Washington’s latest personal spending price gauge showed a 3.7% rise from a year earlier, topping forecasts. That stronger‑than‑expected number keeps the talk of a September rate hike alive. Higher rates are putting pressure on European equities overall.

A senior Iranian official said talks between Tehran and Muscat about the Strait of Hormuz are still in progress. The oil and gas slice of the FTSE 350 fell about 0.7%, and the health sector slipped roughly 1%. Investors are also watching AI hype and Nvidia’s upcoming results, which knocked down Sage, Relx and Experian. On the bright side, Unilever nudged up a touch, while Imperial Brands and British American Tobacco posted solid gains. Mining firm Hochschild surged after reporting a big jump in first‑half revenue.

The broad STOXX Europe 600 index slipped just a hair, ending at 656.41, down about 0.1%. The Euro STOXX 50 climbed 0.23% to 6,470.74, while Germany’s DAX added 0.08% and France’s CAC 40 rose 0.27%. Health‑care stocks in the STOXX gauge dropped about 1%, and the tech index fell 0.84% as SAP slid after a downgrade. Banking shares were the winners, with the eurozone bank index up nearly 1%, led by Deutsche Bank’s 4.3% jump and Commerzbank’s 2.8% rise. German officials are set to meet UniCredit’s top boss about a possible takeover of Commerzbank. Eurozone bond yields nudged higher, with the 10‑year German Bund climbing 2 basis points to 3.24% and the 30‑year reaching 3.75%. Gold stayed near $4,631, keeping its safe‑haven appeal as Middle East tension lingers.

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