European Shares Dip As U.S. Inflation Data Looms; Ahold Jumps.

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European shares edged lower on Wednesday on losses in technology stocks ahead of key inflation data from the United States, while gains in supermarket major Ahold Delhaize kept declines in check.

The pan-European STOXX 600 index (.STOXX) dipped 0.1%, tracking a second straight session of losses after a strong start to the week.

A higher-than-expected U.S. Consumer Price Index report for July could spook markets after a surprisingly robust hiring report last week. Markets are expecting a high chance of a 75 basis point interest rate hike by the Federal Reserve next month as the U.S. central bank remains focused on taming decades-high inflation.

“It’s certainly possible that a decent fall in the headline number could give a market hungry for positive inflation news a big flip. We will see.”

Rate-sensitive tech stocks (.SX8P) shed 0.5%, leading sectoral declines. Euro zone money markets now fully price in a half-point interest rate hike by the European Central Bank in September.

Reuters.

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