European shares slip ahead of U.S. inflation data

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June 10 (Reuters) – European shares on Friday extended losses to a fourth consecutive session, ahead of U.S. inflation data that could spur more speculation about the Federal Reserve’s policy decision next week.

All sectors were trading in red with banks .SX7P weighing the most in the pan-European STOXX 600 index .STOXX, which lost 0.7% by 0704 GMT, on course to end the week about 2% lower.

The U.S. Labor Department’s Consumer Price Index is expected to have accelerated to 0.7% last month from 0.3% in April. But when stripped of volatile food and energy products, it is seen cooling a nominal 0.1 percentage point to 0.5%. nL1N2XW1WK

The data is due at 1230 GMT on Friday, with growing bets that the U.S. Fed will increase beyond the two 50 bps hike it plans for next week and July. nL1N2XX06O

This comes a day after equities were hammered following the European Central Bank’s clues that it would deliver next month its first interest rate hike since 2011, and a potentially larger move in September. nL1N2XW0AB

Among individual stocks, GSK GSK.L jumped 2.4% after the drugmaker said its vaccine for respiratory syncytial virus was successful in a late-stage trial involving older adults. nL1N2XX0A5

(Reporting by Susan Mathew in Bengaluru; Editing by Sherry Jacob-Phillips)

((susan.mathew@thomsonreuters.com; +91-80-6287-2704;))