Europe: Stocks drop at open

EUROPEAN stock markets opened lower on Thursday (Oct 13), mirroring Asian losses before key US inflation data that could determine the pace of Federal Reserve interest rate hikes.

London’s benchmark FTSE 100 index dropped 0.6 per cent to 6,788.85 points, one day before the end of the Bank of England’s (BOE) emergency bond-purchasing drive that sought to calm post-budget turmoil.

In the eurozone, Frankfurt’s DAX index shed 0.3 per cent to 12,135.73 points and the Paris CAC 40 lost 0.5 per cent to 5,790.48, compared with the closing levels on Wednesday.

Asian equities also fell and the US dollar maintained its strength before the crucial US inflation release.

Meanwhile, the BOE will on Friday halt its short-term bond-buying support, which is aimed at quelling market volatility triggered by Britain’s recent debt-fuelled budget. AFP