Investors Analyze UK Inflation Data, China Woes, and Hawkish Fed as European Markets Fluctuate
European markets were higher as investors assessed UK inflation data, with the pan-European Stoxx 600 index gaining 0.2%. Retail stocks led gains, while telecom saw a downturn. UK headline inflation dropped sharply to 6.8% in July, posing a potential challenge for the Bank of England. Insurance stocks, including Admiral and Direct Line, surged after the sharp drop in UK inflation. Sterling rose against the dollar following the data. Fitch warned of possible downgrades to banks, including JPMorgan Chase. HSBC identified 9 'unloved stocks' listed on the London Stock Exchange that could be on the cusp of surging.