European Shares Slip as Corporate Earnings Take Center Stage Amid Tariff Concerns

European shares took a downturn on Wednesday, primarily dragged down by bank stocks, as investors keenly eyed corporate earnings amidst a hectic week featuring anticipated central bank announcements, critical economic data, and the impending August 1 tariff deadline.

Adidas, the German sportswear behemoth, cautioned about substantial financial hits owing to elevated U.S. tariffs, which could ramp up its costs by around 200 million euros in the year's second half. Consequently, its shares plummeted by 5.4% to a near four-month low, triggering a 1.8% drop in JD Sports as well.

Investor attention is sharply focused on the upcoming euro zone and U.S. GDP data, alongside the Federal Reserve's policy decision, expected to maintain the status quo on its benchmark interest rate, despite pressure from President Trump for cuts.

(With inputs from agencies.)