European shares fall led by tech stocks, investors digest PMI data

(Reuters) – European shares opened lower on Thursday, weighed down by German technology firm SAP, while investors looked out for key inflation data for the bloc and its major economies.

The benchmark pan-European STOXX 600 was down 0.2% at 519.90 points by 0707 GMT.

SAP declined 2%, pushing down the technology sector nearly 1%, after a report said that U.S. prosecutors are broadening a probe on potential price-fixing by the German software developer.

The energy sector gained 0.3% as oil prices ticked up on prospects of a wider Middle East war. [O/R]

Meanwhile, European Central Bank board member Isabel Schnabel said euro zone inflation is increasingly likely to ease back to the ECB’s 2% target, dropping her long-standing warning about the difficulty of taming price growth and likely boosting rate cut bets.

Services PMI data for the region, Germany, France, Italy and Spain is expected within the first hour of trade.

The data is likely to show further moderation in services activity and cement expectations for rate cuts by the ECB.

PMI data for Britain is due at 0830 GMT, while Eurozone producer prices figures are slated for 0900 GMT.

Britain’s FTSE gained 0.3% on a report that the Bank of England’s governor, Andrew Bailey, said the central bank could move more quickly to cut interest rates.