European stocks close higher with GDP gain, despite record inflation

By Ovunc Kutlu

ANKARA (AA) - European stock markets closed higher on Monday with gross domestic product (GDP) gain in the third quarter despite annual inflation climbing to a record high level.

GDP increased 0.2% in both the euro area and the EU during July-September period, compared with the previous quarter, according to a preliminary flash estimate released earlier by the statistical office Eurostat.

Annual GDP rose 2.1% in the euro area and 2.4% in the EU during the third quarter, compared with the same period of last year, it said.

The STOXX Europe 600, which includes around 90% of the market capitalization of the European market in 17 countries, was up 2.31 points, or 0.56%, to close the first trading day of the week at 413.07.

The UK’s FTSE 100 rose 65 points, or 0.93%, to finish the session at 7.113. Germany’s DAX 30 gained 42 points, or 0.32%, to close at 13,285.

France’s CAC 40 increased 8 points, or 0.13%, to 6,280 while Italy’s FTSE MIB jumped 127 points, or 0.56%, to 22,657.

Spain’s IBEX 35 added 12 points, or 0.16%, to 7,928.

Euro area annual inflation, on the other hand, is expected to increase 10.7% in October, compared to the same month of last year, according to a flash estimate from Eurostat.

Energy is expected to have the highest annual rate in October with 41.9%, followed by food prices at 13.1%.