AMSTERDAM/LONDON: European stocks posted their worst daily fall in one week on Wednesday, tracking weakness on Wall Street, as investors grew wary of rising inflationary pressures increasing the odds of an early tightening of monetary policy.
The pan-European STOXX 600 index fell 1.5%, but was trading less than 2% below its all-time high. Miners, travel and technology stocks were the top decliners.
A jump in regulated electricity and gas bills and clothing and footwear prices saw British consumer price inflation more than double in April, data showed on Wednesday.
A volatility gauge of European equities rose to its highest in almost a week.
Chip stocks came under pressure, with ASM International, ASML and Infineon Technologies each down more than 2% on concerns about a global semiconductor shortage.
European banks posted the smallest declines, helped by rising euro zone government bond yields.
British infrastructure investor John Laing Group surged 11.2% after US private equity firm KKR agreed to buy the company in a deal valued at about 2 billion pounds ($2.84 billion).
Central bank policymakers expect the surge to be temporary, but investors are worried that the price rises may last for a prolonged period, pushing central banks to counter it with policy tightening.
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