European Stocks Hold Steady Amid Economic Uncertainties
European stocks stayed mostly unchanged due to gains in broader stocks, offsetting losses in luxury and retail sectors. Investors closely watched U.S. tax cut developments and trade deal progress. Tech stocks rose, led by Infineon partnering with Nvidia for AI data centers, while British inflation and European banking sector gains generated further interest.
European stock markets remained mostly unchanged on Wednesday, balancing gains in broader economic sectors against declines in luxury and retail stocks. Investors closely observed developments surrounding a potential tax cut bill in the United States.
The pan-European STOXX 600 concluded slightly lower, impacted heavily by retail stocks, which fell 0.8%. Among the noteworthy declines, JD Sports plunged 10.6% following a 2% drop in first-quarter sales and concerns over higher prices affecting U.S. customer demand. Additionally, luxury giants LVMH, Hermes, and Kering witnessed declines exceeding 2% after Chanel disclosed a 4.3% drop in comparable annual sales.
On a positive note, tech stocks emerged as major gainers. German semiconductor company Infineon rose by 2.3% on news of its collaboration with Nvidia to create chips for AI data centers. Meanwhile, tensions surrounding the U.S. trade deals and tax bill raised concerns about America's fiscal stability, as the deadline for President Donald Trump's 90-day tariff suspension drew near. Amidst these economic fluctuations, Britain faced unexpected inflation growth complicating the Bank of England's envisioned interest rate cuts.
(With inputs from agencies.)
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