Europe stocks retreat after hotter-than-expected U.S. inflation print; Heineken up 13%

European markets shed early gains to trade lower Wednesday afternoon, as global markets assessed a hotter-than-expected inflation reading in the U.S.

The pan-European Stoxx 600 was 0.18% lower at 2:35 p.m. in London, erasing earlier gains as sectors turned mixed. The Stoxx 600 banking index remained 1.04% higher while utilities fell 0.76%.

The consumer price index gained 0.5% for the month, taking the annual inflation rate to 3%, above the Dow Jones estimate of 2.9%. Core CPI, excluding food and energy prices, was also higher than forecast.

U.S. stocks opened lower following the inflation print.

Heineken shares jumped nearly 13% after the Dutch brewer posted a forecast-beating a rise in operating profits and launched a 1.5 billion euro ($1.55 billion) share buyback program.

The positive results led other drinks makers higher, with Belgium’s AB InBev adding 4% and Denmark’s Carlsberg gaining 3%.

Traders were on guard Tuesday after Federal Reserve Chair Jerome Powell told the Senate Banking Committee that policymakers were in no hurry to make more interest rate cuts. Powell will appear before the House Committee on Financial Services on Wednesday.

Elsewhere, Asia-Pacific markets mostly rose overnight.

— CNBC’s Brian Evans contributed to this market summary