European stocks slide after red hot U.S. inflation data; Delivery Hero down 30%

LONDON — European stocks pulled back suddenly on Thursday afternoon after a red hot inflation print out of the U.S. cemented the likelihood of significant interest rate hikes this year.

The pan-European Stoxx 600 fell 0.6% by mid-afternoon, with the rate-sensitive tech sector shedding 2.4% to lead losses, while chemicals bucked the downward trend to add 1%.

Global investors were reacting to the latest consumer price index reading from the U.S., which put annual inflation at 7.5% in January, above expectations and the highest print since 1982. U.S. stock futures pulled back sharply following the data release.

Major earnings in Europe came from Credit Suisse, Unilever, Siemens, Zurich Insurance, AstraZeneca, TotalEnergies and Societe Generale before the bell on Thursday.

Siemens posted a 52% surge in orders that led the German technology group to beat industrial profit expectations for the quarter. Shares jumped 4.9% by mid-afternoon deals.

At the top of the Stoxx 600, British publishing group Informa climbed 6.9% as investors reacted positively to its latest trading update.

Credit Suisse posted a full-year net loss of 1.57 billion Swiss francs ($1.7 billion), well below expectations of a 377.95 million Swiss franc loss, according to Refinitiv. The bank said it took “major litigation provisions” of 1.1 billion Swiss francs in 2021. The Swiss lender’s shares fell 6.4%.

At the bottom of the Stoxx 600, German food delivery company Delivery Hero plunged more than 30% after a disappointing fourth-quarter earnings report.

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