European stocks fall as UK inflation concerns weigh on

European stocks experienced a slight decline in early trading on Wednesday, influenced by higher-than-anticipated inflation figures from the UK, according to Reuters.

The STOXX 600, a pan-European index, fell by 0.3 per cent, with the UK’s FTSE 100 leading regional market losses with a 0.6 per cent drop.

UK inflation data revealed a less-than-expected decrease to 2.3 per cent in April, leading traders to reduce their expectations for a Bank of England interest rate cut next month.

Investors are now keenly awaiting the US Federal Reserve’s latest meeting minutes and Nvidia’s quarterly earnings to assess the potential continuation of the recent market rally.

In individual stocks, Swiss Life saw a 1.8 per cent fall after the largest life insurer in Switzerland revised its 2024 fee income outlook.

Conversely, Marks & Spencer’s shares jumped 7 per cent following the announcement of a 58 per cent increase in annual profit, attributed to a successful business restructuring strategy that boosted sales in both food and clothing divisions.