German stocks lead European shares decline

German stocks led European stock markets lower on Tuesday after a bigger-than-expected rise in inflation in Germany, the region’s largest economy, raised fears of tightening measures from central banks.

Investors are now awaiting annual inflation data in the eurozone for the month of May, which is expected to be released at 0900 GMT and is expected to show a record rise to 7.7 percent, after rising to 7.4 percent last month.

Fears of a steady rise in energy costs increased with the increase in oil prices after Europe pledged to reduce most of its imports of Russian oil.

The German DAX index fell 0.6 percent, while the European Stoxx 600 index fell 0.4 percent by 0713 GMT.

The technology and travel sectors led the declines, each dropping more than one percent.

The Stoxx index is on track to post a monthly decline of more than one percent.

Shares of Dutch chemical company DSM jumped 10.4 percent after announcing its intention to merge with its Swiss counterpart, Firmenich. DSM also announced the sale of its engineering materials unit for $4.13 billion.