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Europe’s STOXX 600 index falls by 1% before German inflation data is released.

Europe’s STOXX 600 index fell on Thursday. Shares of Swedish company H&M were a big reason for this. The company’s earnings were not good, and investors were waiting for German inflation data to find out if the European Central Bank would raise interest rates.

At 07:08 GMT, the STOXX 600 index for the whole continent was down 1.1%. It didn’t follow Wall Street’s 2% rise overnight, and the boost from the Bank of England’s emergency bond buying move had worn off.

Related: Europe’s generic medication manufacturers may reduce output owing to rising energy costs.

H&M fell 6.9% after the world’s second-largest fashion retailer reported a big drop in its pretax profit for the third quarter. This was due to rising costs, less spending by consumers, and one-time costs related to leaving Russia.

The STOXX retailers index fell by 4.1%, which was the most of any sectoral index.

Germany’s DAX index dropped 0.9% before a first look at the country’s inflation data, which was set for later in the day.

Harmonized to make them comparable with inflation data from other countries in the European Union (HICP), consumer prices are expected to rise by 10% on an annual basis in September, after going up by 8.8% in August.

The high inflation number would come at a time when a number of ECB policymakers are pushing for a big rate hike in October, by as much as 75 basis points, to stop rising prices.

In its last two meetings, the ECB has raised rates by a total of 125 basis points.

Related: European equities fall at the opening bell as fears of a recession grow.

This month’s data on how people feel about the economy in the Euro Zone is also due at 1000 GMT.

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