* Travel stocks slide 1%
* Pound weighs on UK's FTSE 100
* Hugo Boss jumps after forecast
July 14 (Reuters) - European shares recovered most of their
day's losses to remain near record highs on Wednesday after a
dovish tone from the U.S. Federal Reserve calmed fears brought
about by rising inflation in the United States.
Fed Chairman Jerome Powell on Tuesday said U.S. monetary
policy will offer "powerful support" to the economy "until the
recovery is complete", reiterating that the rise in inflation
was transitory. Data on Tuesday showing that U.S. inflation ran
hotter than expected in June had investors fearing that a policy
tightening could come sooner than expected.
The pan-European STOXX 600 index ended 0.1% down.
It had lost as much as 0.4% during the session, after hitting a
record high on Tuesday.
Miners, banks, technology and auto
stocks gained between 0.3% and 1% to keep overall losses
"Powell's testimony has ... been enough to make waves in the
commodity space ... and helping miners on the FTSE 100 to make
gains," said Chris Beauchamp, Chief Market Analyst at online
European Central Bank policymakers have stressed in recent
weeks that they will not remove support measures prematurely as
the economic recovery is still under way.
In the UK, however, the FTSE 100 dropped 0.5% on a
stronger pound after data showed British inflation jumped to
2.5% in June, further above the Bank of England's target and its
highest level since August 2018.
Travel & leisure shares were among the biggest
losers, falling an average 1%. TUI , the
world's largest holiday company, shed 7.2% on reports that had
it cancelled more holidays this month and next as the Delta
variant of the coronavirus races around the globe.
Swedish telecoms operator Tele2 gained 5.9% after
reporting an 8% rise in quarterly core earnings, helped by cost
savings and a reduction in pandemic-related headwinds.
German fashion house Hugo Boss rose 2.1% after
forecasting that revenue would grow 30-35% this year.
German airline Lufthansa slipped 1.8% after saying
passenger numbers were currently around 40% of pre-pandemic
levels, and that it aimed to reach 60%-70% by the end of the
(Reporting by Sruthi Shankar in Bengaluru; editing by
Uttaresh.V and Subhranshu Sahu)