European stocks faced a decline on Wednesday, retreating from multi-week highs as investors reacted to a series of disappointing corporate earnings updates and awaited key U.S. inflation data.
The pan-European STOXX 600 index dropped by 0.2% by 0811 GMT, marking a second consecutive day of losses after reaching a seven-week high on Monday. The pullback followed weak corporate earnings reports and a cautious market sentiment ahead of the U.S. inflation reading, which is expected to influence the Federal Reserve’s decision on rate cuts. According to CME’s FedWatch tool, the odds of a 25 basis point rate cut next week are 85%.
Among the notable corporate updates, Zara owner Inditex (BME:ITX) saw a decline of over 6% following a rare miss on third-quarter sales for the world’s largest listed fast-fashion retailer.
Shares of Siemens Energy (ETR:SIEGn) dropped 5% after the CEO of U.S. rival GE Vernova expressed caution about the future of the troubled wind sector. Meanwhile, Adidas AG (ETR:ADSGN) fell 1.5% after German authorities raided its headquarters as part of an ongoing tax investigation that has spanned several years.
On a more positive note, shares of About You soared 65% after Zalando, the German online retailer, announced plans to acquire the fashion group in a €1.1 billion ($1.2 billion) deal. However, Zalando’s shares tumbled by about 10% in response to the news.
Related topics:
-
4 Stock Market Indexes: What You Need to Know