European shares jumped on Thursday, rebounding from a nearly two-year low touched earlier in the session, after US inflation data boosted bets that the Federal Reserve will raise interest rates.
The pan-European Stoxx 600 index fluctuated up and down during the session before closing 0.9 percent higher and ending a six-day loss.
Data showed US consumer prices rose more than expected in September, raising the prospect that the Federal Reserve will raise interest rates for the fourth time in a row by 75 basis points next month.
The Stoxx 600 index fell 4.3 percent in the previous six sessions, amid market concerns about moves by central banks to tighten monetary policy to curb high prices and in light of recent warnings from the International Monetary Fund and the World Bank about a recession.
Among the sectors listed on the Stoxx index, the financial sector was the largest booster for the index, while technology stocks rose from their lowest levels since May 2020, recorded earlier in the session, and rose 0.3 percent.
The index was also boosted by gains in the energy and industry sectors. Chip makers made up for their losses, gaining between 0.9 percent and 3 percent.
Norwegian aluminum producer Norsk Hydro jumped 6.7 percent after reports that the United States was considering imposing restrictions on Russian aluminum imports. (Reuters)