Telecom Italia gains after govt okays landline grid sale
Euro zone final consumer prices due at 1000 GMT
Real estate, miners lead declines
STOXX down 1.4

Jan 17 Reuters European shares extended losses on Wednesday as more hawkish remarks from European Central Bank ECB officials tempered interest rate cut expectations, while glum economic data from China further soured investor sentiment.

The panEuropean STOXX 600, opens new tab index was down 1.4 by 0920 GMT, hitting its lowest level in more than a month.

In the latest remarks from policymakers, ECB President Christine Lagarde said the central bank is on track to get inflation back to its 2 target but victory had not yet been won, while Dutch central bank chief Klass Knot said markets are getting ahead of themselves in pricing monetary easing.

Now that the dust is settling, we39;re seeing that some of that optimism from last year was a bit over. Markets need to readjust their expectations said Anthi Tsouvali, multiasset strategist at State Street Global Markets.

The cuts are not going to be as aggressive as the rate hikes, unfortunately. It is going to be more gradual.

While a pause in rate hikes is nearly priced in for the upcoming meeting in January, traders have pushed back ratecut expectations to April from March. However, they still estimate a total of around 150basis point cuts in interest rates this year. 

The euro STOXX equity volatility index, opens new tab was up by nearly 15 points, while the yield…