(Businesshala) – European stocks fell on Thursday after data showing a spike in US inflation raised bets on a hike in interest rates and offset some optimism about property developer China Evergrande and corporate earnings.
The pan-European STOXX 600 fell 0.1% as of 0819 GMT after US consumer prices rose at the fastest pace since 1990, which could force the Federal Reserve to tighten policy sharply.
However, China-exposed sectors including miners as well as construction and materials rose more than 1%, as troubled developer Evergrande averted a volatile last-minute default 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 drugs weighed in by British discount retailer B&M, which dropped 4.9% after falling first-half core earnings.