European Shares Retreat Amid Falling Miner Stocks & Upcoming US Inflation Data

European shares broke an eight-session winning streak, primarily due to losses among mining stocks. This setback followed China’s weak trade data, overshadowing earlier stimulus optimism. The focus now shifts to upcoming U.S. inflation data, with expectations of an interest rate cut by the U.S. central bank.

The momentum seen in European shares came to a halt on Tuesday, as the market faced setbacks from a decline in mining stocks. These losses came on the heels of underwhelming trade data from China, which overshadowed previous optimism spurred by Beijing's stimulus commitments. Investors are now keenly eyeing U.S. inflation figures, crucial for gauging future monetary policy direction.

The pan-European STOXX 600 index slipped by 0.3%, led by the UK's FTSE 100, which fell 0.5%. Notably, Ashtead Group saw a nearly 10% drop after announcing plans to move its primary listing to the U.S., reflecting its dominant market presence there. The move coincided with revised, lower profit expectations for the year.

Basic resources and luxury sectors bore the brunt of the market retreat, particularly sensitive to China's economic data. Germany's DAX index dipped slightly after confirming flat domestic inflation rates. Market participants are now turning to the anticipated U.S. inflation report, which could solidify expectations for an interest rate cut by the Federal Reserve on December 18th.

(With inputs from agencies.)