Europe close: Stocks fall as inflation accelerates, oil prices rise

30th Sep 2026 15:41

(Sharecast News) - European stocks were in the red on Wednesday as inflation accelerated strongly across the region's three largest economies, while oil prices rebounded due to ongoing supply concerns in the Middle East.

The pan-European Stoxx Europe 600 index finished 0.5% lower, with all major indices across the continent registering losses.

Statistics released during the session showed that annual consumer price growth had picked up in Germany, France and Italy in September, with inflation rates now at multi-year highs.

German inflation rose to 3.3% from 2.9%, French inflation rose to 3.4% from 2.6%, and Italian inflation rose to 4.1% from 3.2%, with data from France and Italy ahead of analysts' expectations.

"It has been a tough month for European stocks, and the selling is continuing right up into the final bell. Beset by higher inflation and a Fed hiking rates, Europe is out of favour once again," said Chris Beauchamp, chief market analyst at IG.

"Without tech stocks to prop them up the indices have been left without much support, and now have to wait for oil prices to reverse course on a more sustained basis and for the Fed to ease back on the hawkish rhetoric."

Meanwhile, oil prices jumped on Wednesday, with the December Brent crude futures up 2.6% at $98.61 a barrel after US president Donald Trump denied reports that he was prepared to ease sanctions on Tehran.

Reports that the Houthis attacked an oil processing facility in Saudi Arabia also lifted prices, though the damage was unclear. The Saudi Aramco-owned Abqaiq facility is the largest crude stabilisation plant in the world, responsible for handling around 5-7% of global supplies.

In equity news, shares in Norway's Kongsberg Gruppen jumped as the company on Tuesday signed a contract worth $1.04bn with Belgium for its National Advanced Surface-to-Air Missile Systems air defence systems.

UK high street bakery chain Greggs surged as it unveiled plans to overhaul its manufacturing operations, with the potential loss of more than 700 jobs. The announcement coincided with an update on third-quarter trading, in which it said it now expected a "modestly improved" outcome for 2026.

BMW was in focus after an investor event in Munich, where the auto group outlined plans to streamline its workforce and boost efficiency through increased use of AI. Shares were higher after the firm said it would cut the number of divisions and management roles by 20% over the coming months.

Sector peer Porsche was higher after a court in Germany dismissed a €5.4bn lawsuit brought by hedge funds related to the failed 2008 takeover of Volkswagen.