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(Reuters) – European shares marked a third straight day of losses on Thursday as a clutch of disappointing earnings reports added to concerns over a quicker-than-expected spike in inflation due to higher commodity prices and a strong euro. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, February 16, 2021. REUTERS/Staff/File Photo The pan-European STOXX 600 dropped 0.8%, with oil and gas stocks leading losses despite higher crude prices. Norway’s Nel ASA was the worst performer in the sector after it posted a wider fourth quarter loss, while UK’s Royal Dutch Shell sank more than 3% after it announced plans to sell its Kaybob Duvernay assets in Alberta. Oil prices – which recently raced to near pre-pandemic levels due to a production freeze in Texas – have driven up expectations that inflation may rise more than expected in the near term. High inflation brings the two-fold risk of weighing on spending, as well as the earlier-than-anticipated scaling back of monetary policy support by central banks. “An increase in headline inflation on the back of technical factors is the worst scenario for the European Central Bank,” said Carsten Brzeski, global head […]
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