Source: Sharecast
The pan-regional Stoxx 600 index was down 0.19% to 552.78 as of 0804 BST. US shares hit fresh highs on Thursday after second quarter GDP growth figures were revised upwards to 3.3% from a flash estimate of 3.0%.
Eyes will be on US personal consumption expenditures data for July – the Federal Reserve’s preferred inflation measure – for any clues on when the central bank will cut rates.
Core PCE is expected to have risen to 2.9% from 2.8%, compared with the Fed’s target of 2%.
“Markets are keeping a close eye on the impact of tariffs on the prices of goods and services. If inflation comes in hotter than expected, the path towards a drop in US borrowing costs in December will become a little less clear,” said Hargreaves Lansdown analyst Derren Nathan.
Inflation data is also due from France, Spain, Italy and Germany,
In corporate news, spirits maker Remy Cointreau said it now expected a €20m hit to operating profit from US tariffs, down from €35m previously, after the US and EU struck a trade deal setting baseline duties at 15%.
Shares in UK banks fell on worries that the government would target their massive profits for a tax to help bolster Britain's fragile public finances. NatWest, Lloyds and Barclays were among the main fallers on the FTSE 100 share index.
Reporting by Frank Prenesti for Sharecast.com