European shares fell on Wednesday, led by technology shares, as concerns regarding inflation and tightening monetary policy overshadowed an atmosphere of optimism surrounding an economic recovery in China.
The European index ended the trading session down 1.1 percent, following rising just over three percent since Friday.
Technology shares fell 2.7 percent, while shares of basic resources companies were hurt by the decline in copper prices.
Data on Wednesday showed that consumer price inflation in Britain rose to 9 percent in April, the highest level on record and close to the Bank of England’s estimate of inflation above 10 percent later this year.
Inflation in the euro zone stabilized around a record high of 7.4 percent in April, driven by a jump in fuel and food prices.
The European Central Bank is expected to raise interest rates soon following ending its bond-buying program at the beginning of the third quarter, with prospects for further increases in the coming quarters, following in the footsteps of a similar strategy by the US Federal Reserve.
