European Markets Close Higher

(RTTNews) - European markets closed higher on Wednesday as investors shrugged off data showing an acceleration in eurozone inflation, and picked up shares, betting on hopes central banks will continue with their easy money policies to boost economic growth.

Weak factory data from Asia and Europe raised hopes the central banks will come up with more policy support.

The pan European Stoxx 600 gained 0.48%. The U.K.'s FTSE 100 climbed 0.42% and France's CAC 40 surged up 1.18%, while Germany's DAX edged down 0.07%. Switzerland's SMI ended 0.17% up.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden and Turkey closed higher.

Greece and Iceland ended weak, while Ireland closed flat.

In the UK market, Just Eat Takeaway.com shares gained more than 7.5%. Informa gained 4.8%, while Ocado Group, JD Sports Fashion, Rightmove, ICP, Melrose Industries, Land Securities, Entain, British Land, Auto Trader Group and Next moved up 2 to 4%.

Prudential, Royal Mail, Antofagasta, BHP Group, Fresnillo and Weir Group lost 1 to 2.2%.

In France, Atos, LVMH, Vinci, Kering, Safran, Airbus Group, Hermes International, Bouygues, Veolia, Accor, Thales, Societe Generale and Publicis Group moved up 1.3 to 4.5%. Pernod Ricard shares moved up 4% on strong results.

Carrefour shares plunged nearly 5%. Faurecia shed about 2%.

In the German market, Fresenius, E.ON, Adidas, Deutsche Bank, RWE, Infineon Technologies, RWE, MTU Aero Engines and Puma gained 1 to 1.7%.

Continental, Siemens, Vonovia, BASF, Linde, BMW and Deutsche Post lost 1 to 2%.

In economic news, Germany's retail sales declined more-than-expected in July, falling by 5.1% month-on-month, after two months of straight growth, data published by Destatis revealed. Retail sales rose by 4.5% in June.

On a yearly basis, retail sales dropped unexpectedly by 0.3% in July, in contrast to the 6.5% expansion posted a month ago. Economists had forecast an annual growth of 3.7%.

The euro area manufacturing logged another strong growth in August but the pace of momentum waned as supply issues weighed on production, final data from IHS Markit showed.

The final manufacturing Purchasing Managers' Index fell to a six-month low of 61.4 in August from 62.8 in July. The flash reading was 61.5. This marked a second successive month in which growth has slowed in the sector since June's survey record expansion.

The euro area unemployment rate declined in July as economies reopened from the second wave, figures published by Eurostat showed. The unemployment rate fell to 7.6% in July, as expected, from 7.8% in June. In the same period last year, the jobless rate was 8.4%.

UK manufacturers reported a slower growth in August amid rising constraints caused by supply chain issues, final survey results from IHS Markit showed.

The final IHS Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index fell to a five-month low of 60.3, a tick below July's 60.4. The flash reading was 60.1.

UK house prices rose at a faster annual pace in August and prices climbed at the second fastest pace in 15 years from the previous month, survey results from the Nationwide Building Society showed Wednesday.

The house price index rose 11% year-on-year following a 10.5% increase in July. Economists had expected the pace to slow to 8.6%.