European Markets Unsettled Amid U.S.-China Trade Talks

European shares ended the trading day in negative territory on Wednesday after initial gains dwindled, prompted by unsatisfactory outcomes from U.S.-China trade negotiations. The STOXX 600 index dropped by 0.3%, marking its third consecutive loss.

Investor hope surged earlier following a U.S. inflation report that suggested potential Federal Reserve rate cuts. Yet, despite promises of high-level agreements between the two economic giants, the trade discussions provided scant details, leading to investor hesitance.

In other market news, British homebuilders saw stock increases due to a substantial affordable housing plan announcement, while Inditex shares fell following disappointing sales figures. Utilities led sector gains, and the European Central Bank hinted at concluding its rate-cutting cycle.

(With inputs from agencies.)