Interest rate concerns weigh on European stocks

European stocks fell on Wednesday as investors awaited an important report on inflation in the United States scheduled to be issued later on Wednesday, searching for clues about the path of US interest rates.

The European STOXX 600 index fell 0.5 percent by 0707 GMT, with the interest rate-sensitive technology companies sector falling 0.8 percent.

The US consumer price index is likely to rise at its largest pace in 14 months in August, but the expected moderate rise in inflation could encourage the Federal Reserve to keep interest rates unchanged at its meeting next week.

Meanwhile, the European Central Bank expects euro zone inflation to remain above three percent next year, raising concerns about a 10th consecutive interest rate hike on Thursday, a source said.

BP shares, listed in London, fell 1.6 percent.

The Financial Times 100 Index fell by 0.2 percent, also affected by data showing that British economic output fell more than expected in July.

Investors are also awaiting industrial production data in Britain and the euro zone, scheduled to be released later today.