European stocks fall ahead of US inflation data

European shares extended losses on Friday for the fourth consecutive session, ahead of the release of US inflation data that may prompt more speculations about the monetary policy path of the Federal Reserve at its meeting next week.

Indices of all sectors fell, and the banking sector was the biggest loser on the European Stoxx 600 index, and it fell 0.7 percent by 0704 GMT, on its way to end the week, down by about two percent.

The US Department of Labor’s consumer price index is expected to rise to 0.7 percent last month from 0.3 percent in April, and the core consumer price index, which excludes volatile food and energy products, is expected to rise by 0.5 percent in the same month.

Data is due at 1230 GMT on Friday, with speculation growing that the US Federal Reserve will not be satisfied with two 50 basis point interest rate hikes at its two meetings next week and in July.

This comes a day after stocks fell after the European Central Bank announced its intention to raise interest rates next month for the first time since 2011, and may decide to rise further in September.

Glasgow SmithKline shares jumped 2.4 percent after the drug company said its vaccine against the respiratory syncytial virus was successful in the last phase of trials that included the elderly.