European Markets: Fashion Giants Rise as Tech Stocks Tumble

European shares edged downwards on Wednesday despite a boost from Inditex, Spain's fast-fashion powerhouse. The pan-European STOXX 600 closed 0.05% lower, with gains in retail and aerospace tempered by a slump in technology stocks, marking a 1.65% decline in the day's poorest performing sector.

Inditex surged 6.4% buoyed by a sales rebound, lifting Spain's index by 1.25% to a recent peak. Meanwhile, geopolitical tensions heightened as Poland intercepted drones amid ongoing clashes in Ukraine, further unsettling market stability.

France's CAC 40 saw a slight rise following President Macron's appointment of Sebastien Lecornu as prime minister. However, persistent fiscal challenges and a cautious outlook from S&P Global temper optimism, as investors await critical indicators from the ECB's upcoming monetary policy decision.

(With inputs from agencies.)