European stocks close higher as Germany's inflation softens

ANKARA

European stock markets closed higher on Wednesday as Germany, the EU's biggest economy, saw its inflation easing in July.

The STOXX Europe 600, which includes around 90% of the market capitalization of the European market in 17 countries, was up 3.90 points, or 0.89%, to finish at 439.88.

Germany's DAX 30 was the best performer of the day, soaring 165 points, or 1.23%, to close at 13,700.

Inflation rate in Germany, based on annual change in consumer price index, was up 7.5% in July, softening from year-on-year gains of 7.6% in June and 7.9% in May, the country's statistical office announced earlier.

On a monthly basis, however, consumer prices were up 0.9% in July from the month before, Destatis said, adding that the main reason for inflation still remaining high is price increases seen in energy products.

Yet, softening in inflation on an annual basis in the EU's largest economy has created positive sentiment in other countries' indexes.

France's CAC 40 rose 33 points, or 0.52%, to end at 6,523. Italy's FTSE MIB added 213 points, or 0.95%, to 22,702.

The UK's FTSE 100 increased almost 19 points, or 0.25%, to finish at 7,507.

Spain's IBEX 35 was up 40 points, or 0.49%, to 8,352 at the closing bell.