European shares dip despite U.S. inflation data

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European shares dip despite U.S. inflation data

- U.S. shares were at its lowest levels on Tuesday just below all-time highs, little changed by European inflation data which suggested the Federal Reserve's accommodative policy would remain intact.

The pan-European STOXX 600 was up 0.1% and the export-heavy German stock index also rose after data showed China's exports grew in March at a robust rate and import growth reached its highest in four years.

Luxury and other consumer stocks led to the STOXX 600 gains, followed by technology stocks.

The benchmark STOXX 600 has fallen to record highs this month after coming under pressure in March from rising bond yields, as central banks worldwide maintained an accommodative monetary policy despite fears of inflation.

Data on Tuesday showed the instuction in the United States was higher than expected, posting its biggest gain in March as mass vaccinations and massive fiscal stimulus increased pent-up demand.

But it has n't denerved markets because we 've heard a lot of unnerving words from the U.S. Federal Reserve that any increase in inflation is temporary, said Fiona Cincotta, a senior financial market analyst at City Index.

The STOXX 600 has also lagged a recovery in its US counterpart due to a new vaccination rollout and a slow wave of coronavirus infections on the continent.

Johnson said on Tuesday that it would delay the rollout of its COVID-19 vaccine in Europe and was reviewing cases of extremely rare blood clots in people after they had received the shot.

Any concern of stoking rollout expectations, especially after J& J, could hit sentiment, said Cincotta.

This week the attention will also be on the start of the corporate earnings season at the beginning of the first quarter, with major U.S. banks Goldman Sachs Group Inc and JPMorgan Chase Co due to report on Wednesday.

Future European earnings will kick into higher gear later in April and analysts expect a 47.4% jump in earnings for the STOXX 600 companies, according to Refinitiv IBES data. Much of the support comes from industrial firms and consumer cyclicals.

Britain's biggest sportswear retailer JD Sports rose 3% as it forecast profit growth for this year and announced plans to increase warehouse capacity to fulfil online orders and minimise disruptions from Brexit.

After it said it would buy Centralpoint, a Swedish IT solutions provider in the Benelux region, for 425 million euros, Dustin surged 17.4%.

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