European shares opened lower as US inflation data failed to calm concerns

European stocks fell in early trading on Friday after a wave of gains on Wall Street that was supported by weak inflation data faded, however better-than-expected earnings put the European STOXX 600 on track for a moderate weekly gain.

The Stoxx 600 index of European shares fell 0.5 percent by 0704 GMT, with shares of mining, oil and gas companies leading losses amid lower commodity prices in light of the strength of the dollar.

Wall Street’s main indexes closed almost unchanged on Thursday, after rising 1 percent during the session, boosted by data showing a moderate rise in US consumer prices in July, which could convince the Federal Reserve to keep interest rates unchanged next month.

However, US and European bond yields continued to rise, adding pressure to stocks.

In the United Kingdom, the Financial Times 100 index fell by 0.6 percent, with the rise of the pound sterling, after official data showed that the British economy achieved unexpected growth in the second quarter.

Among individual stocks, Switzerland’s largest bank UBS rose 4.2 percent after saying it no longer needed the government liquidity support agreed as part of the bank’s state-sponsored takeover of Credit Suisse.