European Shares Subdued Ahead Of US Inflation Data

European stocks fell again on Tuesday after closing higher for the first time in five days the previous day amid optimism about growth.

Caution prevailed as investors awaited U.S. inflation data due out late in the day for hints on monetary policy outlook.

The pan European Stoxx 600 slipped marginally to 467.43 after gaining 0.3 percent in the previous session.

The German DAX inched up 0.2 percent while France’s CAC 40 index dropped half a percent and the U.K.’s FTSE 100 was down 0.2 percent.

Luxury stocks were coming under selling pressure after new local COVID-19 infections more than doubled in China’s southeastern province of Fujian for Sept.13, prompting officials to quickly roll out measures including travel restrictions to halt the spread of the virus ahead of the week-long National Day holiday starting on Oct. 1.

Burberry, LVMH, Kering and Richemont lost 2-5 percent.

China-exposed mining stocks also declined, with Glencore and Anglo American falling 1.2 percent and 1.8 percent, respectively.

Deutz AG jumped 6 percent. The internal combustion engine manufacturer raised its fiscal year 2021 forecast for a second time in 2021.

The world’s largest jewelry maker Pandora soared almost 5 percent after announcing new financial targets.

JD Sports Fashion jumped 8.4 percent after the athleisure company posted a record first half profit.

Vonovia SE gained nearly 1 percent. The property group said that it is waiving all offer conditions in its voluntary public takeover offer for the shares of Deutsche Wohnen SE. Shares of the latter were up 0.7 percent.

Swedish automobile chip manufacturer Veoneer declined 1.4 percent after confirming that it has received an updated non-binding proposal from Qualcomm.

French catering and food services giant Sodexo was moving lower after it acquired a majority stake in the French start-up Wedoogift.

Dutch specialty chemicals maker DSM rallied 3.6 percent after it unveiled plans to sell its materials division.

In economic releases, the U.K. unemployment rate dropped 0.3 percentage points from the previous quarter to 4.6 percent in three months to July, data published by the Office for National Statistics revealed.

The rate came in line with economists’ expectations. At the same time, the employment rate rose 0.5 percentage points to 75.2 percent.

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