STOXX 600 index down 0.3
April consumer confidence data at 1400 GMT
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April 20 Reuters European shares fell on Thursday as sticky inflation spurred concerns of more rate hikes by the European Central Bank, while investors looked ahead to more corporate earnings.

The panEuropean STOXX 600 index was down 0.3, with automobile shares dragging the index. The auto index lost 3.1 after Tesla boss Elon Musk said the electric vehicle maker would prioritize sales growth ahead of profit.

However, real estate shares rose 0.6, limiting some of the losses.

ECB board member Isabel Schnabel said on Wednesday that underlying inflation in the euro zone is sticky and all prices apart from energy were showing high momentum.

Market bets for higher rates were boosted after data showed consumer prices in Britain fell less than expected in March.

With unrest in the banking sector fading and inflation still high, for example in the UK yesterday, we see monetary policy being repriced higher again, said Joost van Leenders, senior investment strategist at Van Lanschot Kempen.

You have sticky inflation and higher expectation for monetary policy, but also lower growth. And that is a negative picture for equities and for earnings.

Investors will keep a close eye on consumer confidence data, due at 1400 GMT, which is expected to show a slight improvement in consumers39; expectations of the economic conditions in the…