European Shares Drift Lower In Lackluster Trade

(RTTNews) - European stocks were slightly lower in cautious trade on Wednesday while the dollar extended losses as benign U.S. inflation data prompted traders to pare back Fed rate cut bets for this year.

Investors also awaited cues from Thursday's U.S. retail sales data and upcoming talks between Ukraine and Russia in Istanbul.

Meanwhile, Germany's consumer price inflation softened to a six-month low in April on falling energy prices, as initially estimated, final data from Destatis showed.

The consumer price index rose 2.1 percent year-on-year, following a 2.2 percent increase in March. The rate came in line with the initial estimate.

Inflation based on the harmonized index of consumer prices slowed for a third month in a row in April. HICP inflation eased to 2.2 percent, as estimated, from 2.3 percent in March.

The pan European STOXX 600 was down 0.2 percent at 543.85 after four days of gains. The German DAX slid 0.2 percent, France's CAC 40 shed 0.6 percent and the U.K.'s FTSE 100 was marginally lower.

French IT group Atos SE slumped 5.4 percent after it unveiled a new strategic and transformation plan.

Construction-to-telecoms group Bouygues rallied 3 percent as Q1 core earnings beat estimates.

Train maker Alstom plummeted almost 16 percent after guidance for fiscal year 2025-26 came in below expectations.

ABN AMRO Bank surged over 5 percent after the Dutch bank reported first-quarter profit that beat expectations.

Europe's largest travel operator TUI plummeted 11 percent after widening its Q2 loss Burberry Group soared 8 percent. The British luxury brand said it would cut 1700 jobs globally amid an uncertain macro environment.

Tobacco company Imperial Brands plummeted 6.2 percent after mixed half-yearly results and the announcement of CEO retirement.