European shares muted as investors brace for data-packed week
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Hannover Re up after H1 results
BT jumps as India's Bharti to buy 24.5% stake from Altice
Vestas drops after trimming FY profit margin outlook
STOXX 600 flat
Updated at 1600 GMT
By Pranav Kashyap and Ankika Biswas
Aug 12 (Reuters) - gtgEurope's benchmark stock index was subdued on Monday, erasing early gains, with investors bracing for key U.S. inflation numbers togauge the Federal Reserve's monetary policy path amid lingering recession fears and a deluge of other European data.
The STOXX 600 index .STOXX closed on a flat note, after last week's muted performance as the continent-wide index rebounded from last Monday's sharp selloff in risk assets on U.S. recession fears.
Energy .SXNP and basic resources .SXPP led sectoral gains, tracking a strong rise in oil and metal prices , while real estate .SX86P was the worst hit, with a 0.9% decline.
Insurance stocks .SXFP were also among top gainers, as Hannover Re HNRGn.DE climbed 5% after the German reinsurer reported better-than-expected results.
All eyes are onthe U.S. consumer and producer pricesdata and Europe's employment and GDP flash numbers, due through the week's course.
Investors are focused on hopes of a rate cut by the U.S. Fed, especially after recession fears in the United States sparked a global markets selloff last week, which was later partially offset byencouraging jobs data.
"Market pricing suggests traders remain nervous about the steady-as-she-goes assessment of policy rates, and the volatility of last week perhaps serves as a warning that we could be only one or two bad prints away from further turmoil," said Benjamin Picton, a senior macro strategist at Rabobank.
"This week will throw up a number of opportunities to upset the narrative and allow volatility to rear its ugly head again."
The U.S. central bank meets on Sept. 18-19 and traders are pricing in a 46% chance of 50-basis-point cut.
Topping the STOXX 600,BT Group BT.L jumped 8.4% after India's Bharti Enterprises agreed to buy around a 24.5% stake from the British telecommunication firm's top shareholder, Altice UK.
Orlen PKN.WA rose nearly 5% after Poland's top refiner reported preliminary Q2 results above estimates.
Vestas VWS.CO dropped almost 8% to the bottom of the STOXX 600 after the world's largest wind-turbines makerwarned of a second quarter loss and trimmed its full-year profit margin and revenue outlook.
JD Sports Fashion JD.L fell 4% after Deutsche Bank downgraded the British sportswear retailer's stock to "sell" from "hold".
Trading volumes in August are expected to be relativelylower as many market participants are off for the summer.
Reporting by Pranav Kashyap and Ankika Biswas in Bengaluru; Editing by Sherry Jacob-Phillips, Mrigank Dhaniwala and Shreya Biswas
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