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European stocks retreated from their high on Wednesday, inflation worries weighed on global sentiment, while travel stocks fell amid concerns over the spread of delta stress on the continent.
As of 07:08 GMT, the pan-European Stoxx 600 index was down 0.2%. Shares in the travel and leisure sector fell about 1%, and those of travel company Toy fell 4.2%.
Britain’s FTSE 100 lost 0.4% to the strength of the pound after data showed inflation in Britain topped the target rate in June.
Markets were worried after data on Tuesday showed US inflation rose more than expected in June, prompting many traders to consider the possibility of an earlier-than-expected interest rate hike.
The old continent tries to expand the field of vaccines
German fashion house Hugo Boss rose 4.4% after forecasting revenue growth of 30-35% this year.
On the flip side, data showed that industrial production in the euro area fell more than expected in May, mainly due to a drop in the production of non-durable consumer goods such as food and clothing.
The European Statistics Office (Eurostat) said industrial production in the 19 countries that trade in the euro fell 1% on a monthly basis, while economists polled by Reuters expected a drop of 0 , 2%.
Production posted a sharp year-over-year increase as the economy recovered from the worst phase of the COVID-19 pandemic in 2020. But the 20.5% increase was lower than forecast average of 22.2% by economists in a Reuters poll.
The pace of the recovery also slowed after rising 39.4% in April from a year ago.
Non-durable consumer goods recorded the largest monthly decline of 2.3%, the first decline this year and the largest since April 2020.
Production of capital goods, including machinery, fell 1.6 percent, which may indicate lower output in the future.
Energy production fell 1.9% month-on-month, while production of durable consumer goods such as cars and refrigerators rose 1.6%.
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