European shares fell as a jump in a key U.S. inflation gauge rekindled rate worries, but strong earnings at technology bellwether Intel helped stocks such as Nokia cap market losses on Wednesday. Insurers weighed as Prudential's in-line sales failed to impress investors, while Fiat shares sank to a record low amid concerns about the prospects for a recovery in the car sector in general, and the company's own outlook. The FTSEurofirst 300 pan-European index shed 0.6 percent to end at 1,064.6 points. The DJ Euro Stoxx 50 index was 0.44 percent lower at 2,944.33 points. Earnings took a back seat, though, as investors reacted to data showing U.S. underlying inflation had risen at the sharpest rate in 2-1/2 years during March. The core consumer price index that strips out volatile food and energy costs accelerated to a 0.4 percent rise in March from 0.3 percent in February, reflecting a broad-based pickup in many categories. The report, which followed Tuesday's tame producer price index data, reignited worries that inflationary pressures may force the Federal Reserve to accelerate the pace of monetary tightening. --More 2302 Local Time 2002 GMT
