European shares slip ahead of crucial US, euro zone data

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European shares edged lower on Friday as investors geared up for a slew of euro zone data and a key U.S. inflation report for cues on the potential timing of interest rate cuts on both sides of the Atlantic.

The STOXX 600 index was down 0.2% at 552.41 points, as of 0703 GMT, and headed for its first weekly loss in four, if the current trend continues. Concerns over a potential collapse of the French government and the U.S. Federal Reserve's independence weighed down the benchmark index this week.

Latest data showed French consumer prices rose slightly less than anticipated in August, while German figures and U.S. personal consumption expenditures (PCE) report will take centre-stage later in the day.

The PCE data, Fed's preferred inflation gauge, could shed light on how recent U.S. tariffs have affected prices. Markets broadly expect the U.S. central bank to cut rates next month, following Chair Jerome Powell's dovish remarks last week.

Shares of Remy Cointreau rose 1% after the French spirits maker lowered its projected impact from U.S. tariffs on European imports, following a fresh U.S.-EU trade agreement.

(Reporting by Medha Singh in Bengaluru; Editing by Sherry Jacob-Phillips)

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