Euro Markets Close Higher as Inflation Surges, US Shutdown Sparks Concerns

Inflation in the Eurozone soared above target, putting pressure on the ECB. The US government shutdown has markets on edge, with gold prices hitting record highs.

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2025 October 8 . 4:01 AM

1 min read

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Euro Markets Close Higher as Inflation Surges, US Shutdown Sparks Concerns

European markets closed higher today, boosted by strong pharmaceutical stocks. The Euro Stoxx and Dax both gained 1%, with the Dax reaching 24,114 points. Inflation in the Eurozone rose to 2.2% in September, exceeding the ECB's target. Meanwhile, the US government shutdown has sparked concerns about stock market stability, with DZ Bank warning of a 'possible stress test'.

Adidas and Puma shares rose after Nike reported better-than-expected results. The gains came despite no significant stock market boost for German companies following Pfizer's strong performance. Pfizer, however, has agreed to lower Medicaid prices in exchange for tariff concessions, providing a lift to the healthcare sector.

The euro remained steady against the dollar at $1.1733. Inflation in the Eurozone climbed to 2.2% in September, marking a rise above the ECB's target of just below 2%. This increase could influence the ECB's monetary policy decisions in the coming months.

The US government shutdown has raised uncertainty, with DZ Bank cautioning that it could pose a challenge to stock markets. Historically, the S&P 500 has weathered previous shutdowns, but the current situation may be more impactful. Gold prices hit a new record high of $3,895 per troy ounce, reflecting investor unease. Despite these developments, bond markets showed only slight movements in response to the US shutdown news.

European markets finished the day in positive territory, driven by strong pharmaceutical stocks. Inflation in the Eurozone climbed above target, potentially influencing ECB policy. The US government shutdown has sparked concerns about market stability, with some analysts warning of a potential stress test. Gold prices reached a new record high, indicating investor uncertainty.