European exchanges rally to close with major gains

By Ovunc Kutlu

ISTANBUL (AA) - European stock exchanges rallied Thursday to finish the session with major gains as inflation showed a significant slowdown.

The STOXX Europe 600, which includes around 90% of the market capitalization of the European markets in 17 countries, was up 7.08 points, or 1.38%, to 521.67.

The UK’s FTSE 100 rose 75 points, or 0.91%, to close the session at 8,328 after the Bank of England kept its policy interest rate unchanged at 5%

Germany’s DAX, meanwhile, increased 290 points, or 1.55%, to end the day at 19,002.

France’s CAC 40 was the best performer of the day, soaring 170 points, or 2.29%, to reach 7,615.

Italy’s FTSE MIB jumped 389 points, or 1.16%, to 34,044. Spain’s IBEX 35 rose 93 points, or 0.8%, to 11,778 at the closing bell.

The euro area annual inflation rate came in at 2.2% in August, down from 2.6% in July, Eurostat announced Wednesday.

Annual inflation in the EU was 2.4% in August, down from 2.8% in July, said the statistical office.