The European markets got off to a positive start Wednesday, fueled by solid GDP data from Germany and the Eurozone. However, the markets sold off sharply after the release of the U.S. inflation report.
Consumer prices in the U.S. increased by more than anticipated in the month of January, according to a report released by the Labor Department on Wednesday. The Labor Department said its consumer price index climbed by 0.5 percent in January after edging up by a revised 0.2 percent in December.
Economists had expected consumer prices to rise by 0.3 percent compared to the 0.1 percent uptick originally reported for the previous month.
Despite the initial drop following the report, the European markets quickly recovered and even took out the highs of the session in the afternoon. Markets on Wall Street opened sharply lower Wednesday, but staged a quick recovery and climbed into positive territory.
The pan-European Stoxx Europe 600 index advanced 1.06 percent. The Euro Stoxx 50 index of eurozone blue chip stocks increased 0.86 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.90 percent.
The DAX of Germany climbed 1.17 percent and the CAC 40 of France rose 1.10 percent. The FTSE 100 of the U.K. gained 0.64 percent and the SMI of Switzerland finished higher by 1.67 percent.
In Frankfurt, steelmaker Thyssenkrupp lost 0.69 percent after its first-quarter profits and revenue came in lower than estimated.
Engineering and industrial services business Bilfinger surged 5.77 percent after narrowing its Q4 loss.
In Paris, Danone rose 0.59 percent. The company intends to sell part of its 21.3 percent stake in Japan-listed Yakult Honsha Co.
Crédit Agricole fell 2.83 percent. The bank posted double-digit growth in the fourth quarter despite a one off tax surcharge in France.
In London, Sky Plc jumped 1.98 percent and BT Group dipped 0.13 percent. The companies have agreed to pay £4.464bn to secure the broadcast rights for the bulk of Premier…