(Reuters) – European shares dipped at the opening bell on Wednesday after higher-than-expected U.S. inflation cemented views of a large interest rate hike by the Federal Reserve next week, but a rally in retailers led by Spain’s Inditex kept declines to a minimum.
The continent-wide STOXX 600 index fell 0.3% by 0714 GMT, with rate-sensitive technology stocks down 0.4%. The banks index in Europe edged 0.1% higher.
Data showed on Tuesday U.S. consumer prices rose more than expected in August, giving the Fed ammunition to deliver a third 75-basis-point interest rate hike next Wednesday.
Retailers jumped 2.3%, leading sectoral gains after shares of fashion brand Zara’s owner Inditex leapt 5%. Spanish stocks rose 0.3%, among few gainers in Europe.
Inditex reported a 24.5% jump in six-month sales and a higher profit than a year ago, closing July on a strong footing just before fashion demand started weakening last month due to rampant inflation.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Krishna Chandra Eluri)
