European stocks experienced a continued decline for the third consecutive day on Wednesday, as investors evaluated regional inflation data and anticipated direction from the European Central Bank's upcoming rate-setting meeting.
Concerns over Chinese demand and apprehensions that a potential return of Donald Trump to the White House might bring more inflation and increased interest rates also impacted market sentiment.
The pan-European STOXX 600 index fell by 0.5% to 514.66, following a 0.3% drop on Tuesday. Key indices also declined with Germany's DAX slipping 0.2%, France's CAC 40 shedding 0.3%, and the U.K.'s FTSE 100 down by 0.2%.
Dutch semiconductor company ASML Holding saw a significant drop of 6.5% amid worries over additional export restrictions to China. Similarly, BE Semiconductor shares fell by 3.3%.
Danish hearing aid manufacturer Demant plummeted by 11% following a profit warning.
Mining behemoth Antofagasta faced a 4% decline as the Chilean firm cautioned that annual production would be at the lower end of its guidance range.
HSBC Holdings saw marginal declines after announcing Georges Elhedery's appointment as the Group Chief Executive.
Shares of Reckitt Benckiser exhibited fluctuations after the consumer goods company's sales were impacted due to a tornado damaging a warehouse in Mount Vernon, Indiana.
Smiths Group's shares fell by over 1% after the engineering firm disclosed the sale of 1.2 million shares in ICU Medical.
Meanwhile, Pernod Ricard shares rose by 1.3% in Paris following their agreement to sell international wine brands to Australian Wine Holdco Limited, a consortium comprising international institutional investors and the owner of Accolade Wines.
Allianz shares declined by approximately 1% after the German insurer agreed to acquire a majority stake in Singapore's Income Insurance for €1.6 billion.
On a positive note, Adidas shares jumped by 3.6% as the sportswear maker raised its full-year guidance, backed by an 11% revenue increase in the second quarter of FY24.
In economic news, Eurozone consumer price inflation was finalized at 2.5% year-on-year in June, slightly down from May's 2.6% rate, and notably lower than the previous year's rate of 5.5%.
In the U.K., inflation remained steady at the official target in June. The stability in services inflation reduced the likelihood of an August rate cut. The consumer price index grew by 2.0% year-on-year, maintaining the same growth pace as in May, as per the Office for National Statistics, contrary to expectations of a decrease to 1.9%. Consequently, the prospect of an August rate cut diminished further with services inflation holding steady at 5.7%.
