European shares climbed on Friday but saw sharp losses during a quarter marked by rising interest rates and tumbling risk sentiment. The region-wide STOXX 600 index closed up 1.3% but briefly pared some session gains after data showed euro zone inflation zoomed past forecasts to 10.0% in September, hitting a new record high.
The FTSE 100 in London momentarily fell before finishing up 0.2%. Consumer spending in the United States increased in August after dipping in July, according to data released on Friday. Inflation in the Netherlands reached its greatest level in decades as a result of increasing energy prices. On the geopolitical stage, President Vladimir Putin declared Russia’s takeover of a region of Ukraine, despite Russian forces’ military failures.
The Russian president’s declaration of Russian control over 15% of Ukraine has been roundly condemned by Western countries and even several of Russia’s closest friends. Puma and Adidas, both German sportswear companies, saw their shares fall 5.7% and 4.1%, respectively.