European Shares Subdued Ahead Of US Inflation Test

(RTTNews) - European stocks were subdued on Wednesday after the U.S. and Yemen's Iran-aligned Houthis reported separate attacks on shipping, raising concerns over further supply disruptions and denting prospects for ending the months-old Iran war.

Investors also shifted focus to upcoming U.S. inflation data for signals on the Fed's policy trajectory.

The pan-European STOXX 600 was marginally lower at 660.32 after ending on a flat note on Tuesday.

The German DAX edged up by 0.2 percent after final data from Destatis showed Germany's inflation accelerated as estimated in July.

Consumer prices grew 2.8 percent year-on-year in July, faster than the 2.3 percent increase seen in June as the end of government's fuel tax pushed up energy prices. The rate was the highest since April when inflation stood at 2.9 percent.

Likewise, EU harmonized inflation accelerated to a three-month high of 2.8 percent in July, as estimated, from 2.4 percent in June.

France's CAC 40 fell 0.3 percent and the U.K.'s FTSE 100 was marginally lower.

In corporate news, Balfour Beatty shares soared 8.4 percent. The British construction group raised its annual operating profit forecast after posting a sharp rise in first-half profit.

Dutch lender ABN AMRO jumped more than 5 percent after posting solid second-quarter results and lifting full-year income guidance.

Germany's Indus Holding rallied 3 percent after reporting a sharp rise in first half earnings and lifting its full-year 2026 guidance.

IT services provider Bechtle fell 2.7 percent despite reporting higher Q2 bottom-line earnings and raising guidance for the full financial year.

Industrial services company Bilfinger slumped 7 percent after announcing that its full-year EBITA margin will come in at the lower end of its guidance range.