European shares listless as investors brace for inflation test

Europe's STOXX 600 struggled for direction on Monday, as investors geared up for this week's key US inflation prints and a slew of economic data from the euro zone that could test the benchmark index's record-breaking run, reports Reuters.

The pan-European STOXX 600 was unchanged as of 0820 GMT. Automobiles led sectoral gains after recent losses, while construction and materials was the worst hit.

The benchmark index hit a record high on Friday, logging its biggest weekly gain of 3 per cent since late January, underpinned by strong corporate earnings. The STOXX 600 regained its momentum midway into May, after geopolitical tensions and monetary policy uncertainties saw it wilt in April.

All eyes will be on the US producer and consumer prices inflation readings, due on Tuesday and Wednesday, which will further set the tone for the Federal Reserve's anticipated rate cuts this year.

Back home, euro zone's final inflation and flash first-quarter GDP in the latter half of the week will be scrutinized to gauge the interest rate path for the European Central Bank, which has indicated a June cut, flagged uncertainties around policy outlook beyond that, and stressed its independence from the Fed.