European stock markets close lower as inflation hits 25-year high

By Ovunc Kutlu

ANKARA (AA) - European stock markets closed lower Tuesday as inflation climbed to its highest level in almost 25 years.

The STOXX Europe 600, which includes around 90% of the market capitalization of the European market in 17 countries, fell 4.28, or 0.92%, to close at 462.96.

London’s FTSE 100 lost 50 points, or 0.71%, to end the day at 7,059, while Germany’s DAX 30 declined 180 points, or 1.18%, to finish at 15,100.

France’s CAC 40 decreased 55 points, or 0.81%, to 6,721. Italy’s FTSE MIB 30 shed 227 points, or 0.87%, to end the day at 25,814.

Spain’s IBEX 35 was the worst performer of the day, plummeting 150 points, or 1.78%, to close at 8,305.

The euro area posted an annual inflation rate of 4.9% in November, the highest rate since 1997, according to provisional figures released earlier by Eurostat.

Investors also are worried that the new coronavirus variant that emerged in South Africa could prompt quarantine measures, close businesses and halt economic recovery around the world.