European stocks held back by inflation worries

European stocks slipped on Thursday after data showing a spike in U.S. inflation encouraged bets on interest rate hikes and offset some optimism around property developer China Evergrande and a slew of corporate earnings. The pan-European STOXX 600 fell 0.1% as of 0819 GMT after U.S. consumer prices surged at the fastest pace since 1990 that could compel the Federal Reserve into faster policy tightening.

European stocks slipped on Thursday after data showing a spike in U.S. inflation encouraged bets on interest rate hikes and offset some optimism around property developer China Evergrande and a slew of corporate earnings.

The pan-European STOXX 600 fell 0.1% as of 0819 GMT after U.S. consumer prices surged at the fastest pace since 1990 that could compel the Federal Reserve into faster policy tightening. However, China-exposed sectors, including miners as well as construction and materials, gained more than 1% as troubled developer Evergrande averted a destabilising default at the last minute for the third time in the past month.

Swiss chemical company Sika jumped 10.8% after agreeing to buy construction chemicals maker MBCC in a $6 billion deal. Luxembourg-based ArcelorMittal gained 2.5% after reporting its strongest quarter in more than a decade.

Retail stocks were among the biggest drags, weighed down by British discount retailer B&M, which dropped 4.9% after posting lower first-half core earnings.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)