European shares fall amid US inflation data release

As investors warily awaited crucial U.S. inflation data later this week for cues on the Federal Reserve’s upcoming move on interest rate rises, European markets fell on Tuesday.

The pan-European STOXX 600 index decreased by 0.3% after Monday’s highest session in almost two weeks. Economically vulnerable industries including miners and automakers, which were among the top gainers in the previous session, led declines on Tuesday.

After soaring by 7% in July on concerns about gloomy economic data, escalating geopolitical tensions, and worry that higher interest rates could push the country into a recession, the STOXX 600 has struggled this month.

Investors are now waiting for the world’s largest economy’s inflation estimate on Wednesday after unexpectedly good job statistics dashed expectations that the Fed could ease up on its string of rate hikes intended to combat rising inflation.

Dufry, a Swiss duty-free retailer, increased 2.9% to the top of the STOXX 600 after reporting that robust sales growth persisted in July despite skyrocketing inflation.