Europe open: Shares down ahead of flash EZ inflation data

(Sharecast News) - European shares opened lower on Tuesday as investors eyed flash eurozone CPI data and bond market volatility. The pan-regional Stoxx 600 index was down 0.18% to 550 a6 0808 BST with all major bourses lower. Eyes will turn to the eurozone CPI flash estimate for August.

"Headline inflation is expected at 2.0%, with core easing to 2.2% - both near the European Central Bank's (ECB) target. A print in line with expectations should reinforce the view that the ECB will hold rates steady in September," said Swissquote Bank analyst Ipek Ozkardeskaya.

"The next move is still likely a cut; softer growth could justify one more 25bp reduction by year-end. Yet markets now assign less than a 40% chance of another cut in 2025, down from 50% in July."

French and UK government bond yields rose as traders worried about budgetary fiscal plans in both countries. The rate on Britain's 30-year debt almost touched a 27-year high of 5.649% set in April on concerns about how Finance Minister Rachel Reeves will plug a more than £20bn fiscal hole.

In equity news, Nestle shares fell after the foods giant ousted chief executive Laurent Freixe for failing to disclose a romantic relationship with a subordinate.

Kering gained 3.8% after HSBC upgraded the Gucci owner to 'buy' from 'hold'.

Reporting by Frank Prenesti for Sharecast.com