European markets close down 1% after hotter-than-expected U.S. inflation

This was CNBC's live blog covering European markets.

LONDON — European markets closed lower on Tuesday as investors assessed incoming corporate earnings reports and a key U.S. inflation print.

The Stoxx 600 index ended the session down 1%, compounding earlier weakness. A 2.7% decline for the tech sector led losses, while financial services stocks lost 1.7%.

Losses deepened after new figures showed U.S. inflation rose by more than expected in January, as stubbornly high shelter prices squeezed consumers.

The headline consumer price index increased by 0.3% month-on-month and 3.1% annually, the Bureau of Labor Statistics reported, exceeding a Dow Jones consensus forecast of 0.2% for the month and 2.9% year-on-year.

The hotter-than-expected print will mean the U.S. Federal Reserve may be more cautious around the prospect of cutting interest rates as quickly and steeply as the market expects.

The regional Stoxx index has recorded a muted February so far, following a strong end to January. That's despite big movements in individual stocks, as company results roll in. This week will see reporting from several major European businesses, including Heineken, Airbus, Renault, NatWest and Commerzbank.

Investors may pay particular attention to consumer stocks and what they suggest about the strength of certain economies, as central banks monitor the state of growth and inflation.

U.S. stocks turned lower Tuesday after a hotter-than-expected inflation report raised doubts that the Federal Reserve would be able to cut rates several times this year.

The Dow Jones Industrial Average and the S&P 500 both sunk 1.4% in early deals, while the tech-heavy Nasdaq fell 1.8%.

— Karen Gilchrist

The Stoxx 600 index was down 0.8% by mid-afternoon,