European markets reversed early losses on Thursday morning as soft inflation data reinforced expectations that the ECB (European Central Bank) will inject stimulus into the economy next month.
The pan-European Stoxx 600 climbed 0.4% at 375.08 in early trade, construction and material stocks adding 0.8% as most sectors and major bourses entered positive territory.
The German state of Saxony reported CPI (consumer price index) inflation at +1.4% year-on-year, falling further below the ECB target, while Spain’s August HCPI (harmonized consumer price index) came in at +0.4%, down from +0.6% on the year in July. The ECB has indicated that stimulus could be forthcoming if inflation continues to languish well below its target of almost 2%.
Source : CNBC