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* Miners, banks, luxury stocks lead declines
* U.S. core consumer prices slow sharply in August
* Pandora up after boosting earnings target, buyback
* JD Sports jumps after profit surge
Sept 14 (Reuters) - European stocks ended flat on Tuesday,
with miners, banks and luxury stocks leading declines as
optimism over cooling U.S. inflation growth in August proved to
The region-wide STOXX 600 index inched 0.01% lower,
with the basic resources sector index dropping 1.9% and
banks sliding 1.1%.
"Having got off to a positive start yesterday, today's price
action looks set to follow the pattern of last week, where after
a similar Monday rally, sentiment deteriorated as concerns about
profit margins in the face of rising prices saw certain sectors
come under further pressure," said Michael Hewson, chief market
analyst at CMC Markets UK.
Luxury stocks, including LVMH, Kering,
Richemont and Burberry, fell between 1.9% and
3%, tracking moves in Asia on concerns about the spread of
COVID-19 cases in China.
"Ongoing China coronavirus concerns and lockdowns in several
cities in Fujian are not helping sentiment," said Mark Taylor,
sales trader at Mirabaud Securities.
Home to many luxury names, France's CAC 40 fell
0.4%, while the UK's miner-heavy FTSE 100 shed 0.5%.
Still, many strategists expect European equities to
outperform this year due to relatively high rate of vaccinations
and catch-up trade in cheaper segments of the market such as
banks and energy.
Data earlier in the day showed underlying U.S. consumer
prices increased at their slowest pace in six months in August,
suggesting that inflation had probably peaked, though it could
remain high for a while amid persistent supply constraints.
The report supported sentiment for a brief while in midday
trading as investors were hopeful that the U.S. Federal Reserve
would likely delay its announcement of cutting back monetary
"While we initially saw markets spike on the prospect of a
more patient Federal Reserve, we have since seen traders realize
that today's data is unlikely to push the Fed to change course,"
said Joshua Mahony, senior market analyst at IG.
Pandora, the world's largest jewelry maker,
rose 6.8% after it boosted its earnings target for the coming
years and lifted its share buyback plan.
JD Sports Fashion jumped 9.7% after it reported a
record first-half profit as lockdowns eased and people visited
its shops in Britain.
Dutch specialty chemicals maker DSM hit a record
high after it said it was weighing the sale of its materials
Danish brewer Carlsberg fell 3.5% after a double
downgrade to "sell" by Berenberg.
(Reporting by Sruthi Shankar and Shreyashi Sanyal in Bengaluru;
Editing by Shounak Dasgupta, Saumyadeb Chakrabarty and Gareth