STOXX index falls 0.2
UK March inflation falls to 10.1
Euro zone inflation data due at 0900 GMT
Heineken up on 2023 profit outlook

April 19 Reuters European shares fell on Wednesday, as investors scrutinised stillhot UK inflation and corporate earnings, while awaiting euro zone March inflation data for more clues on the European Central Banks monetary tightening path.

The panEuropean STOXX 600 index fell 0.2 but was still hovering around its 14month highs.

Meanwhile, ratesensitive real estate and technology shares were down 1.7 and 1.3 respectively on hawkish comments by ECB officials signalling more rate hikes.

Foods and beverages index limited the declines, rising 0.5.

The big story for the markets currently is the earnings season, where corporate profits are expected to show resilience in the first quarter, said Joe Little, global chief strategist at HSBC Asset Management.

But down the line, we expect a deceleration in profits and margins as we factor in recession in the second half of the year.

Britain now has Western Europe39;s highest rate of consumer price inflation, despite falling to 10.1 in March from February39;s 10.4.

Londonlisted blue chips were down 0.3 following the release of the UK inflation data. Money markets are fully pricing in a 25 basis points hike by the Bank of England in May.

Investors will closely monitor euro zone inflation, due at 0900 GMT, and expected to rise 6.9 in March on a yearly basis from the same pace in February….