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* July inflation at 8.9% y/y
* Adyen falls after earnings miss
* Norway cenbank raises rates by 50 bps
* Rockwool falls on margin outlook cut
Aug 18 (Reuters) - European shares rose on Thursday with a
boost from oil stocks, but lagged other major markets as euro
zone inflation reached a record high in July and European
Central Bank officials hinted at another large rate hike next
The continent-wide STOXX 600 ended 0.4% higher,
lifted by a 1.7% gain for energy stocks after crude
futures rose more than $1.
"Oil and gas stocks have enjoyed a welcome boost today,
following a period of weakness in crude prices," said Joshua
Mahony, senior market analyst at online trading platform IG.
Consumer prices in the euro zone rose 0.1% month-on-month in
July for a 8.9% year-on-year increase, the highest since the
euro was created in 1999, EU's statistics office confirmed.
Of the total, 4.02 percentage points came from more
expensive energy, the costs of which surged because of Russia's
invasion of Ukraine.
Earlier, ECB board member Isabel Schnabel said the region's
inflation outlook had failed to improve since the rate hike in
July and suggested another big rate increase next month.
The comments pushed Germany's 10-year yield up 5
basis points to a near four-week high.
Governing Council member Martins Kazaks echoed Schnabel's
views in a separate interview, according to a news report.
On Wednesday, the Federal Reserve's July meeting minutes
also provided little comfort over the pace of U.S. interest rate
"The ECB has a lot of catch-up to do, but their bark is
going to be worse than their bite because they're constrained by
the Transmission Protection Instrument (TPI) - if borrowing
costs surge too high too quickly, that could lead to a debt
crisis," said David Madden, market analyst at Equiti Capital.
The TPI is a bond purchase scheme aimed at helping more
indebted euro zone countries.
Money markets are now fully pricing in a half percentage
point ECB move in September and a 35% chance of a bigger
75-basis point move.
Meanwhile, Norway's central bank raised interest rates by 50
basis points and said more hikes were in the pipeline.
Among stocks, Rockwool tumbled 8.3% after the
Danish stone-wool manufacturer cut its 2022 margin guidance on
soaring energy prices.
Adyen dropped 3.7% after the Dutch payment
processor missed core earnings expectations for the first half
Siegfried jumped 15.7% after the Swiss
pharmaceutical company beat first-half expectations and raised
its 2022 outlook.
(Reporting by Anisha Sircar and Shreyashi Sanyal in Bengaluru;
Editing by Sriraj Kalluvila and Tomasz Janowski)