Credit Suisse says likely to see loss in Q2
Zaraowner Inditex lifts retailers as profit jumps
Traders price in 75 bps of ECB rate hikes by Sept

June 8 Reuters European shares fell on Wednesday as a 6 slide in Credit Suisse following a profit warning dragged on lenders, while investors braced for the European Central Bank39;s meeting on Thursday and the U.S. Federal Reserve39;s next week.

The panEuropean STOXX 600 index was last down 0.3, giving up opening gains.

Banks fell 0.7 after Credit Suisse said it was likely to see a groupwide loss in the second quarter as volatility hit its investment bank.

The question is whether banks are able to manage the volatility intelligently, and the Credit Suisse warning basically then makes people nervous overall, said Sebastien Galy, a senior macro strategist at Nordea Asset Management.

Capping the losses, energy stocks advanced as oil prices traded higher on expectation of low U.S. inventories.

Retailers, which slid on Tuesday after U.S. peer Target warned of a further margin squeeze, rose 1.6, with Zaraowner Inditex up 4.6 after reporting an 80 jump in net profit for the FebruaryApril period.

Meanwhile, money markets ramped up their bets on ECB rate hikes to price in 75 basis points of increases by September as inflation hit record high last month.

The central bank has so far signalled hikes starting in July, and markets had earlier priced in two 25 basispoint rises.

It39;s very difficult for the ECB to deliver 50 bps…