European stocks presented a mixed performance on Wednesday as investors awaited U.S. consumer inflation data due later in the day. This data is anticipated to provide insights into the potential magnitude of an expected rate cut by the Federal Reserve at its upcoming policy meeting.
Attention was also trained on the European Central Bank (ECB), which is forecasted to reduce its borrowing costs for the second time this year on Thursday.
The pan-European STOXX 600 inched up 0.2 percent to close at 509.01, recovering from a 0.5 percent drop the previous day. Germany's DAX and France's CAC both climbed approximately 0.2 percent, while the U.K.'s FTSE 100 dipped by 0.2 percent.
The British pound declined following data that revealed the U.K. economy was unexpectedly stagnant in July. The Office for National Statistics reported that real gross domestic product (GDP) showed zero growth for the second consecutive month, as decreases in production and construction were balanced by increases in services output. Economists had forecasted a 0.2 percent growth.
In the three months leading up to July, GDP grew by 0.5 percent, largely fueled by the services sector.
In corporate news, Santander Bank Polska fell 8.2 percent after its parent, Banco Santander, sold a 5.2 percent stake in the Polish unit.
Energy giant BP Plc saw its shares rise by around 1 percent, and Shell gained 0.8 percent, buoyed by a more than 1 percent increase in oil prices, which rebounded after reaching a 33-month low on demand concerns the previous day.
Online property platform Rightmove edged up by 0.5 percent after rejecting an initial cash and shares bid from Australia's REA Group.
Conversely, sustainable energy firm Ricardo dropped nearly 2 percent, despite reporting profitable growth for FY2023/24.
GSK shares decreased by nearly 1 percent after the drug maker announced that its experimental herpes simplex virus (HSV) vaccine candidate did not meet the primary endpoint in a mid-stage trial.
Pest-control leader Rentokil Initial plunged 18 percent following a profit warning.
Commerzbank surged by 15 percent as Italian lender UniCredit acquired a 9 percent stake in the German bank and expressed intentions to seek approval to buy more shares.
Automaker BMW experienced a slight gain despite revising its 2024 outlook downwards.
