Brewer Heineken slides after profit warning
EZ banks edge up after stress test results
Euro area inflation seen easing in July

July 31 Reuters European shares were broadly flat on Monday ahead of data that is expected to show euro zone inflation eased in July, likely supporting the view that the European Central Bank will hold off from hiking interest rates again next month.

The panEuropean STOXX 600 struggled for direction, pulling back from near 112year highs touched last week.

Dragging the index down, Heineken slid 4.8 after the world39;s secondlargest brewer by volume cut its 2023 profit growth forecast after an economic slowdown in Vietnam depressed firsthalf earnings by more than expected.

Other spirits makers Diageo and AnheuserBusch Inbev fell about a percent each.

Investors appeared to remain on the sidelines ahead of the euro area inflation data, which is expected to show that price growth eased to 5.3 in July from 5.5 a year earlier. The inflation report as well as secondquarter GDP data are due at 0900 GMT.

With the ECB indicating that a pause might be coming when the governing council next meets in September, today39;s latest flash EU CPI for July could go further in reinforcing that narrative after Friday39;s slowdown in German inflation, Michael Hewson, chief market analyst at CMC Markets said in a note.

We39;ve heard several ECB policymakers expressing increasing caution over the growth outlook, which appears to be tempering enthusiasm for more…