Europe close: Stocks slumps after hotter-than-expected US June CPI print

Stocks fell on Wednesday following the release of data on the other side of the Pond showing the fastest rise in annual headline consumer prices in the US since late 1981.

The year-on-year rate of increase in US CPI jumped from 8.6% for May to 9.1% in June.

On a more encouraging note - perhaps - Russia, Turkey and Ukraine appeared to make headway in talks aimed at restarting grain exports from Ukraine.

Ukraine's foreign minister was cited by European media as saying all that was left was for Russian President, Vladimir Putin, to provide personal guarantees.

By the end of trading, the pan-European Stoxx 600 was down by 1.01% to 412.81, alongside a 1.16% decline on the German Dax to 12,756.32.

In parallel, euro/dollar was up 0.51% at 1.0088, even as Fed funds futures moved to price in roughly even odds of a 100 basis point interest rate hike for when the US central bank next met at the end of July.

Front-dated Brent crude oil futures meanwhile were drifting lower by 0.75% to $98.74 a barrel on the ICE.

At 1330 BST, the US Department of Labor was scheduled to release the Consumer Price Index for the month of June.

After the close of markets in London meanwhile, at 1900 BST, the Federal Reserve was due to release its closely-followed Beige Book, which typically preceded its next policy meeting by about a fortnight.

There was little in terms of fresh euro area economic data, although the national statistics offices of France, Germany and Spain did confirm preliminary readings for harmonised CPI in June in their respective countries.