The pan-European STOXX 600 index dipped 0.2% within the first half an hour of trading.
A higher-than-expected U.S. Consumer Price Index report for July could spook markets, which are already expecting a high chance of a 75 basis point interest rate hike by the Federal Reserve next month.
Rate-sensitive tech stocks shed 0.5%, to lead sectoral declines as euro zone money markets now fully price in a half-point interest rate hike by the European Central Bank in September. [GVD/EUR]
Helping the STOXX 600 cut back losses was a 5.9% jump in Ahold Delhaize, powering it to the top of the index.
The Dutch company said it was postponing plans for an initial public offering (IPO) of its non-food retailer, Bol.com, because of unfavourable market conditions.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Sriraj Kalluvila)