European Stocks Drop After Above-Forecast U.S. Inflation Data

European shares turn significantly lower after above-forecast U.S. inflation data question the prospect of the Federal Reserve cutting interest rates in June and raises broader concerns that inflation could be slow to come down. Annual U.S. headline CPI rose to 3.5% in March from 3.2% in February, above forecasts for 3.4% in a WSJ poll of economists. "Given the hawkish readings across the board for the third month in a row the likelihood of a June Fed rate cut is going to be brought into question," writes Jack Amy, portfolio analyst at European digital wealth manager Moneyfarm.