STOXX 600 off 0.4
Real estate, energy firms lead declines
SBB drops after delaying dividend payment
Banco BPM rises after raising profit target

May 9 Reuters European shares fell on Tuesday after a string of downbeat corporate updates soured sentiment, which has been tested in the days leading up to crucial U.S. economic data that would shed more light on the Federal Reserve39;s monetary policy plans.

The panEuropean STOXX 600 index was down 0.4, as of 817 GMT.

The index has been resilient this year, rising 9.6, but has come under pressure in recent days after the European Central Bank remained steadfast in its commitment to taming price pressures and as investors nervously await U.S. inflation data.

The readings on U.S. consumer and producer prices, due later in the week, will be gauged for any signs that inflation has cooled enough for the Fed to consider easing financial conditions soon.

The market39;s really uncertain whether it is going to be a hard or soft landing, said Giles Coghlan, chief market analyst at HYCM.

If we see a big miss on the CPI headline number, that will increase the chances of a soft landing narrative. The Fed will need to do less, so I expect that to weaken the dollar and potentially lift equity markets.

SBB dropped 4.4 after the Swedish landlord said it would delay its dividend payment and no longer carry out a 2.63 billion Swedish crowns 259.1 million rights issue after SP Global cut its credit rating to junk.

The move made…