European shares flat as inflation woes offset earnings cheer, China recovery hopes

European shares were flat in early trade on Wednesday, as some strong earnings and hopes about China's economic recovery were offset by worries about inflation and monetary policy tightening. Data showed British consumer price inflation hit 9.0% in April, its highest level on record, inching closer to Bank of England's (BoE) forecast for it to top 10% later this year. This comes amid falling COVID-19 cases in China fuelling hopes that curbs could be lifted, which could prompt more economic activity and demand from the world's second-largest economy.