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European Stocks Close Higher as Traders Digest U.S. Inflation Data, Earnings

A woman shops at a grocery store on March 13, 2020 in New York City.
Jeenah Moon | Getty Images
  • The pan-European Stoxx 600 climbed 1.2% by the close, with basic resources adding 3.3% to lead gains.
  • Investors were digesting fresh U.S. inflation numbers, which rose higher than expected in September, increasing pressure on the Fed to tighten policy.
  • Earnings season is gathering steam, and looks set to drive individual share price movement in the coming weeks.

LONDON — European stocks closed higher on Thursday with investors around the world reflecting on the latest inflation data and earnings out of the U.S.

The pan-European Stoxx 600 climbed 1.2% by the close, with basic resources adding 3.3% to lead gains as all sectors finished in positive territory.

Global investors were digesting the latest U.S. inflation data which rose higher than expected in September, increasing pressure on the Federal Reserve to raise rates sooner rather than later.

The U.S. consumer price index jumped 0.4% in September from the month prior and 5.4% year over year, the Labor Department reported Wednesday. Economists expected to see a month-to-month increase of 0.3% or annualized rate of 5.3%, according to Dow Jones.

Minutes released Wednesday afternoon from the Federal Open Market Committee's September meeting showed the central bank could begin tapering its asset-purchase program as soon as mid-November.

Stateside, stocks climbed following a strong set of results from major companies. Bank of AmericaMorgan StanleyCitigroup and Wells Fargo all saw their shares rise after beating earnings expectations.

In terms of individual share price movement, Shares of SoftBank-backed British e-commerce company THG climbed 10.6%, attempting to rebound from a sharp slump earlier in the week after a capital markets day that backfired.

Toward the bottom of the European blue chip index, Danish bioscience company Chr Hansen dropped 6.7% after missing third-quarter profit expectations.

Danish health care company Demant fell 4.9% after a voluntary recall by its Cochlear implants business.

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- CNBC's Ryan Browne contributed to this report.

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