UPDATE 2-Europe stocks slip as hot Spanish inflation data fans rate hike concerns


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      STOXX 600 off 0.2%

      Technology stocks lead losses

      Philips rises on job cut plans

      Spain's consumer prices rise in January

 (Updates to market close)
    By Ankika Biswas and Amruta Khandekar
       Jan 30 (Reuters) - European shares slipped on Monday as
hotter-than-expected inflation data from Spain added to market
jitters as investors brace for a slew of interest rate hikes
from prominent central banks later in the week.
    The pan-European STOXX 600  .STOXX  closed down 0.2%. 
    Money market bets show that the U.S. Federal Reserve is set
to raise its policy rate by 25 basis points (bps) to 4.50%-4.75%
on Wednesday, while the European Central Bank (ECB) and the Bank
of England (BoE) are seen raising rates by 50 bps each to 2.50%
and 4.0%, respectively, on Thursday.
    Eurozone bond yields climbed after preliminary data showed
Spain's consumer prices rose by a greater-than-expected 5.8%
year-on-year in January.
    "What surprised some people was that in Spain, we had the
first acceleration with the annual pace in six months and that
is likely to keep the pressure elevated for the ECB to remain
aggressive with their rate hikes," said Edward Moya, senior
market analyst at OANDA.
    "It's clearly a wait-and-see mode. Hotter inflation is 
something that will continue to spook markets."
    Europe's technology index  .SX8P  was the top decliner among
STOXX 600 sectors, down 1.7%, with chip stocks ASM International
N.V.  ASMI.AS  and Nordic Semiconductor  NOD.OL  among those
posting the biggest losses.
    Keeping London's FTSE 100  .FTSE  afloat and limiting
declines on the STOXX 600, UK-based consumer goods giant
Unilever  ULVR.L  rose 1.3% after announcing a new chief
executive officer.
    Boosting the broader healthcare sector  .SXDP , Philips
 PHG.AS  jumped 7%, after the Dutch health technology company
said it will scrap another 6,000 jobs.
    Germany's DAX index  .GDAXI  was down 0.2%.
    The German economy unexpectedly fell in the fourth quarter,
a sign that Europe's largest economy may be entering a
much-predicted recession as an effect of the Ukraine war.
    Crucial euro zone inflation data due a day before the ECB's
meeting will only include an estimate for Germany after the
bloc's biggest country delayed the release of its own figures,
Eurostat said on Monday.
    Optimism around better-than-feared corporate earnings and
economic resiliency have set the STOXX 600 index on track for a
monthly gain of nearly 7%, after losing nearly 13% in 2022. 
    Earnings for STOXX 600 companies have likely jumped around
10% in the fourth quarter, down from 14.5% seen at the start of
January, Refinitiv data showed.    
    Among other stocks, PNE AG  PNEGn.DE  dropped 16.1%, after
the German renewables firm said Morgan Stanley  MS.N  is no
longer pursuing a stake sale.
 (Reporting by Ankika Biswas, Amruta Khandekar and Bansari Mayur
Kamdar in Bengaluru; Editing by Janane Venkatraman, Rashmi Aich
and Jonathan Oatis)

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