European shares subdued on Fed rate-hike bets
European shares subdued on Fed rate-hike bets For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
June 18 (Reuters) - European shares were subdued at the open on Thursday, as investors bet the Federal Reserve's next move would be a rate hike following hawkish projections from policymakers, although easing oil prices helped temper inflation concerns.
The pan-European STOXX 600 index .STOXX edged 0.15% lower to 638.35 points by 0812 GMT.
The Fed held rates steady on Wednesday, but persistent inflation concerns led nine policymakers to project one rate hike this year. Traders see a 49.5% chance of a September increase and expect rates to remain unchanged thereafter through year-end, per CME Group's FedWatch tool.
Oil prices extended losses on Thursday, with Brent Crude trading near $77 a barrel, after the U.S. and Iran signed an interim agreement to end the war, reopen the Strait of Hormuz and waive U.S. sanctions on Tehran's oil.
Energy price-sensitive airlines Lufthansa LHAG.DE and Air France AIRF.PA rose 0.9% and 2.7%, respectively.
Tech stocks .SX8P gained 0.6%, with chipmakers Infineon IFXGn.DE and Aixtron AIXGn.DE gaining more than 4% tracking a rally in Asian stocks. MKTS/GLOB
Generali GASI.MI rose 2.6% after a report that UniCredit CRDI.MI is seeking to double its stake in the lender through Delfin, the Del Vecchio family holding company. UniCredit shares were up 0.3%.
UK's biggest food retailer, Tesco TSCO.L, slipped 3.3% after reporting a slowdown in first-quarter sales growth on impact from the Middle East conflict.
Edenred EDEN.PA jumped 13.9% after a media report said Britain's BC Partners is weighing a takeover of the French voucher company.
(Reporting by Utkarsh Hathi and Johann M Cherian in Bengaluru; Editing by Harikrishnan Nair)