UPDATE 2-European stocks edge lower as heavyweight miners decline

* Miners, energy stocks lead losses
* Burberry tumbles on annual sales drop
* Several European markets closed for holiday

(Adds comments, updates prices throughout)
By Sruthi Shankar and Shreyashi Sanyal
May 13 (Reuters) - European stocks dipped on Thursday,
weighed down by a fall in heavyweight miners after commodity
prices tumbled, while a rapid rise in U.S. inflation kept risk
sentiment at bay.
The pan-European STOXX 600 index .STOXX edged down 0.1%,
after falling as much as 1.7% earlier in the session, drifting
further away from an all-time high.
Basic resources .SXPP fell 3.0%, leading declines among
European sectors, while oil and gas .SXEP slipped 1.4%. The
sectors were among recent market leaders on the back of a surge
in commodity prices. MET/L O/R
Automakers .SXAP also shed 0.9%, while defensive names
like utilities .SX6P , healthcare .SXDP and telecoms .SXKP
rose.
U.S. inflation readings for April pointed to a steady rise,
fanning concerns that the Federal Reserve would raise interest
rates earlier than expected. However, Wall Street reclaimed lost
ground as technology stocks rebounded after open. .N
"At one point today European markets were down heavily...
inflation concerns once again weighed on sentiment, however
these lows proved to be short-lived, with the rest of the day
spent clawing the bulk, or all of the losses back," said Michael
Hewson, chief market analyst at CMC Markets in London.
"In an extremely fickle environment markets are continuing
to wrestle with the dilemma as to whether the current bout of
rising inflation prints is transitory in nature"
European stocks have rallied to all-time highs this month,
with the STOXX 600 up almost 9.5% so far this year as economic
recovery prospects and strong earnings drew buyers of equities.
British luxury brand Burberry BRBY.L tumbled 4.2% on
reporting a 10% drop in annual sales, weighed down by the
COVID-19 pandemic. UK's biggest broadband and mobile provider, BT Group BT.L ,
fell 5.9% as it reported a 7% decline in revenue and a 6% drop
in adjusted earnings for the full year.
In another disappointing London stock market debut, shares
of Canadian chip company Alphawave AWE.L plunged by as much as
21%. British engineering company Rolls-Royce RR.L fell nearly
6%, as it stuck to its guidance to turn free cash flow positive
at some point during the second half of 2021.
Markets in Denmark, Finland, Norway, Sweden and Switzerland
were closed for public holiday.