European share rally pauses as focus turns to inflation; Kering slips By Reuters

(Reuters) – European shares retreated from near one-year highs on Wednesday as concerns about a possible rise in inflation tempered optimism around a vaccine-led global economic recovery, while Kering (PA:PRTP) tumbled after sales at its Gucci brand fell more than expected.

Shares of the French conglomerate, which also owns the Saint Laurent brand, slumped 8.2% as revenue for the whole group fell 8.2% in the fourth quarter. The broader European retail index fell 2.9%.

The pan-European STOXX 600 index was down 0.4% by 0804 GMT, with healthcare, telecoms and financial services stocks also leading declines.

London’s blue-chip FTSE 100 lost 0.4% as data showed British inflation rose a little more than expected in January.