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European Stocks Drop After US Inflation Comes Above Expectations

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European stocks fell following three days of gains after US inflation topped expectations in August, fueling fears that the Federal Reserve will stay hawkish for longer. 

The Stoxx 600 Index dropped 1.5% by the close in London, wiping out an earlier increase of as much as 0.6% after the US consumer price index climbed 0.1% from July, after no change in the prior month. Real estate, technology and retail shares led the retreat among sectors.