Rise in European stocks stops as focus shifts towards inflation and Kering plummets

European stocks retreated from nearly a year highs, as concerns about a possible increase in inflation undermined optimism about the economic recovery led by vaccines, while Kering fell after sales of its Gucci brand fell more than expected.

Shares of the French group, which also owns the Saint Laurent brand, fell 8.2 % as the group’s entire revenue fell 8.2% in Q4. The broader European retail index fell 2.9%.

The pan-European STOXX 600 index lost 0.4% as health care, telecommunications and financial services stocks also led losses.

And the London FTSE 100 leading stock index incurred a 0.4% loss, as data showed that British inflation rose slightly more than expected in January.