By Sruthi Shankar
(Reuters) -European stocks eased further away from multi-week highs on Wednesday after a series of downbeat corporate updates, while the U.S. inflation data was also on investors’ radar.
The pan-European STOXX 600 index slipped 0.1% by 0922 GMT, dipping for a second day after touching a seven-week closing high on Monday.
Asian stocks also took a breather ahead of the U.S. inflation reading that is expected to leave the Federal Reserve on course to cut rates again. The odds of a 25-basis-point cut next week are at 85%, per CME’s FedWatch tool.
“A cut still seems very likely in our view but a CPI report with elements of strength could certainly influence the guidance for 2025 from the FOMC next week,” MUFG analysts said.
Zara owner Inditex (BME:ITX) slid about 5% after the world’s biggest listed fast-fashion retailer posted a rare miss on third-quarter sales even as it said the holiday shopping season had got off to a good start.
The broader retail index dropped 2.3%, on track for its biggest percentage drop in more than a month.
“The company has not called out any impact from Spanish floods, but we anticipate this was 1-2pp headwind for November trading,” Citi analyst Monique Pollard noted, pointing to the impact of flash floods in October.
France was also in focus after President Emmanuel Macron on Tuesday set himself 48 hours to name a new prime minister. Michel Barnier’s government was ousted last week, sparking France’s second major political crisis in six months.
The European Central Bank’s interest rate decision is due on Thursday, with traders betting on a 25 bps rate cut. The central bank’s views on the pace of rate cuts next year could drive markets, as investors assess the fallout of a slowing euro zone economy and potential U.S. tariffs.
German energy group Siemens (ETR:SIEGn) Energy dropped 1.3% after U.S. rival GE Vernova’s CEO said he was cautious about the outlook for the struggling wind sector.
Adidas AG (ETR:ADSGN) dipped 0.5% after authorities raided its headquarters in Germany as part of a years-long tax investigation.
Carl Zeiss (DE:AFXG) slid 7.6% after the German optical systems maker reported weaker-than-expected full-year results.
On the flip side, About You soared 65% after German online retailer Zalando said it would acquire the fashion group in a 1.1 billion euros ($1.2 billion) deal. Zalando, however, tumbled about 4.7%.