European Shares Dip Amid Inflation Concerns and Trade Uncertainty
European shares fell on Wednesday, led by a decline in ASML after a weak business update. Investors are cautious due to inflation concerns driven by U.S. tariffs, with the STOXX 600 index down. U.S. CPI data heightens worries, while U.S.-EU trade talks and retaliatory measures stir unease.
In a tense market session on Wednesday, European shares witnessed a decline, heavily influenced by setbacks faced by ASML. The major supplier of chip-making gear reported a disappointing business update, contributing to broader concerns over inflation and trade disputes, resulting in a 0.3% dip in the STOXX 600 index.
ASML experienced a steep 6.7% drop after an earnings forecast revealed potential stagnation in growth by 2026. President Donald Trump's tariff announcements further agitated the situation, instilling uncertainty and prompting a cautious investor outlook.
The U.S. consumer price index continues to spur inflationary fears, with investors closely monitoring upcoming producer price data. Simultaneously, the looming U.S.-EU trade discussions, with potential retaliatory measures on the horizon, keep market participants on edge. Meanwhile, British inflation figures unexpectedly surged to an annual rate of 3.6% in June.
(With inputs from agencies.)
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