UPDATE 1-European shares limp ahead of US data, Powell remarks; Delivery Hero spikes

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Sonova jumps after forecasting accelerating 2024 growth

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Rheinmetall falls as Q1 profit and sales miss forecasts

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Chemicals group Brenntag's shares slide as it lowers forecast

(Updated at 0808 GMT)

By Ankika Biswas

May 14 (Reuters) - European shares were subdued on Tuesday as investors braced for a key U.S. inflation data and Federal Reserve Chair Jerome Powell's remarks due later in the day, while Delivery Hero jumped on the sale of its Taiwan foodpanda business to Uber.

The pan-European STOXX 600 was flat, as of 0808 GMT, but hovered near its all-time high hit on Friday.

After strong gains last week, investors are at bay for two days now ahead of the U.S. producer prices inflation data and Powell's remarks, one day prior to the market-moving consumer prices inflation data, for clues on the Fed's interest rate-cut outlook.

"Any signs of CPI softening would benefit both U.S. and European stocks, and will certainly make a rate cut decision for the ECB much easier ... What it will probably not want to do is cut two or three times, while the Fed remains on hold," said Stuart Cole, chief macro economist, Equiti Capital.

As for headlining stocks, Delivery Hero soared 20%, on track for its biggest one-day gain since December 2019, after Uber announced a $1.25 billion deal to take over its foodpanda business in Taiwan and buy new shares in the German firm.

Swiss eye-care group Alcon advanced 8.7% to an all-time high after first-quarter earnings, while hearing aid maker Sonova Holding climbed 6.4% after forecasting accelerating growth for 2024.

Shares of Rheinmetall shed 4.8% after the German arms manufacturer missed expectations for first-quarter sales and profit, the biggest drag in the benchmark German index , which was down 0.3% and underperforming among regional peers.

Chemicals distributor Brenntag dropped 8.7% after lowering its full-year earnings forecast, pulling the broader index down 0.7%.

The travel and leisure sector was the worst hit, pulled down by a 2% fall in Flutter after the world's largest online betting company maintained its full-year outlook.

"Earnings so far this year have been upbeat and this has helped to drive up share prices. The prospect of ECB and BoE rate cuts is also providing a boost, while the return of M&A activity is also positive," Equiti Capital's Cole said.

Among others, the automobiles sub-index was the best sector performer, with Volkswagen rising 1.6%. A report showed the German automaker is exploring the sale of as much as $1.08 billion worth of stock in its heavy truck-making arm Traton SE.

Further on the data front, German inflation inched up in April to 2.4%, confirming preliminary data, while Spain's European Union-harmonised 12-month inflation rose to 3.4% in April, from 3.3% in the period through March.

(Reporting by Ankika Biswas in Bengaluru; Editing by Eileen Soreng and Sherry Jacob-Phillips)