France, Spain inflation hotter than expected in Feb
Euro zone bond yields rise to decade high after data
Nibe Industrier pulls construction materials sector down
Ocado slides on worsethanexpected FY loss

Feb 28 Reuters European shares fell on Tuesday, with UK39;s Ocado sinking after a worsethanexpected fullyear loss, while data from France and Spain pointed to inflation being stickier than feared.

The continentwide STOXX 600 index slipped 0.3 in the first hour of trading, after closing sharply higher in the previous session.

Whether it be Spain, France or Germany, the European Central Bank has to basically take into account stickier inflation because you39;re talking about three out of four of the biggest economies in Europe, said Michael Hewson, chief market analyst at CMC Markets UK.

Higher food prices pushed the 12month inflation rate in France to 7.2 in February from 7.0 in the preceding month.

In Spain, consumer prices rose 6.1 yearonyear in February, over a 5.9 rise in the 12 months to January.

So you can39;t very well ignore it and consequently, that means we39;re going to get 50 basis points in March, Hewson said.

Investors are expecting the ECB to hike interest rates by 50 basis points in its upcoming March meeting, taking the benchmark rate to 3. Rates are expected to hit a peak of 4 in July.

Also pressuring European stocks was a rise in euro zone government bond yields, with the yield on Germany39;s 10year bond , the bloc39;s benchmark, rising…