Inflation Woes Keep European Shares Below All-Time Highs

European shares remained below their all-time highs on Monday, as investors continued to worry that a jump in inflation would lead to a sudden cut in monetary policy loosening globally, while travel stocks tumbled on a spike in coronavirus cases across Asia.

The pan-European Stoxx 600 index fell 0.1%, and travel-related shares of TUI, Ryanair Holdings and IAG were among the biggest losers.

The pan-European benchmark Stoxx 600 fell from its all-time high just over a week ago, as a surprisingly tightening stance from the US Federal Reserve roiled global stock markets.

Although the index recovered to a 1.2% gain last week, it has so far been unable to surpass the all-time closing high it reached on June 16.

Banks, industrial and mining shares fell between 0.3% and 0.5%, after leading gains last week.