European stocks fall on hot U.S. inflation data raises concerns about the outlook for interest rates

European stocks closed lower on Thursday, erasing gains in early trading, as U.S. data showed high inflation, raising fears that the Federal Reserve’s high interest rates will last longer. The STOXX Europe 600 index closed down 0.2%. Prior to the release of the data, the index rose as much as 0.4%. Mining stocks fell the most, while media and consumer products stocks outperformed. France’s CAC 40 index rose, buoyed by luxury giants LVMH and Hermes International SCA, making it one of the few winners in European equities. The U.S. producer price index rose by the most in six months in February, while jobless claims came in lower than expected. The data further proved that inflation is still high, weighing on market sentiment.