European stocks close higher as U.S. inflation spikes; UDG Healthcare up 21% on takeover news
13 May 2021 | SET News
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European stocks closed higher on Wednesday as investors reacted to stronger-than-expected U.S. inflation data.
The pan-European Stoxx 600 provisionally ended the session up 0.4%. Oil and gas shares rose 2% amid a surge in crude prices, while tech shares sank 1.4% as investors rotated out of growth names.
U.S. inflation accelerated at its fastest pace since 2008 last month, new figures revealed Wednesday, with the Consumer Price Index spiking 4.2% from a year ago and exceeding the Dow Jones estimate for a 3.6% increase.
Investors have grown worried that a rapid rise in inflation may force central banks to raise interest rates and implement other tightening measures. U.S. Federal Reserve Chair Jerome Powell has said any uptick in inflation should be transitory, however.
The inflation spike sent U.S. stocks tumbling, with the tech-heavy Nasdaq index slipping 1.8% to lead the losses.
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