European shares started Thursday on the back foot as a rapid rise in US inflation confirmed recent investor fears.
The pan-European Stoxx 600 index fell 1% at the opening with sentiment soured further by a fall in commodity prices as the dollar strengthened. Data on Wednesday showed US consumer prices jumped by the most in nearly 12 years in April, boosting the dollar against emerging market currencies.
In equity news, shares in UK luxury brand Burberry fell 8% as the firm reported a 10% drop in annual sales due to the Covid-19 pandemic.
UK telecoms and broadband provider BT Group was also lower as it reported a 7% fall in revenue and a 6% fall in annual adjusted earnings.
Hargreaves Lansdown shares were lower despite the financial services group reporting record new business in the first four months of 2021 as people invested savings amassed during the pandemic into the stock market.
Spanish firm Telefonica bucked the trend and saw its shares up 3% as it reporting a slowing in revenue declines in the first quarter.
