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March 15 Reuters European shares inched lower on Friday, as the strength in telecommunications sector was offset by a selloff in global equities after hotter than expected inflation figures from the U.S. hurt June ratecut bets.

The panEuropean STOXX 600 index was down 0.1, as of 917 GMT, but looked set for its eighth consecutive week of gains.

The index scaled a fresh record high in three of the five sessions this week, supported by an array of upbeat corporate updates and expectations of an interest rate cut from the European Central Bank in June.

Market participants are drawing relief from the recent slowdown in inflation in the euro zone, while remaining focused on upcoming economic data that could alter the ratecut bets, as in the case of U.S.

Thursday39;s heated U.S. producer price numbers followed consensustopping consumer inflation in the world39;s largest economy, eroding expectations of a June Fed rate cut.

Markets are bearish today as equity bulls fail to conquer another hotterthanexpected inflation report this week, Jose Torres, Senior Economist at Interactive Brokers said in a note.

Investors are now thinking that rate relief may arrive in July rather than June, with expectations nearing coinflip odds for the earlier month.

Ratesensitive real…