FX.co ★ European Stocks Lower

European stocks experienced declines on Wednesday, with the STOXX 50 decreasing by 0.2% and the STOXX 600 dropping by 0.3%. Investor sentiment remained cautious following comments from Federal Reserve Chair Jerome Powell the day prior. Powell emphasized ongoing challenges in the labor market and inflation, while also observing that equity valuations appear elevated. Geopolitical tensions were also in the spotlight, as former U.S. President Donald Trump intensified his statements against Russia, declaring on social media that, with the backing of the European Union, Ukraine is capable of reclaiming all its territories. Additionally, market participants are likely to focus on the release of Germany’s Ifo Business Climate index. In corporate news, most large-cap companies experienced declines, with reductions in shares for SAP (-0.6%), LVMH (-1.5%), Hermes (-2.3%), Novo Nordisk (-0.5%), L'Oréal (-0.9%), HSBC Holdings (-1.4%), and Siemens (-0.8%).