European Shares Tumble Amidst Easing Inflation and Earnings Woes

European stocks fell after reaching a recent high, influenced by declining energy and mining stocks. Investors focus on corporate earnings and upcoming European Central Bank interest rate decision. STOXX 600's yearly climb trails U.S. markets, reflecting subdued European economic conditions.

European stocks took a downturn on Tuesday, following a brief rally to multi-week highs. This decline was influenced by falling energy and mining stock prices, coinciding with a dip in oil prices after reassurance that Israel will not target Iran's oil facilities.

The pan-European STOXX 600 index saw a slight decrease of 0.1% by 0820 GMT. Energy stocks were a key drag, dropping nearly 3%, while basic resources fell more than 2%, hitting their lowest in three weeks amid weak copper prices. The index has risen 9% this year, lagging behind the S&P 500's gains as Europe grapples with a poor economic outlook compared to U.S. counterparts.

All eyes are on the European Central Bank's upcoming decision expected on Thursday, likely to cut interest rates by 25 basis points following signs of easing inflation. In the corporate sphere, Ericsson's strong third-quarter results boosted its shares by 6.5%, while Bellway's optimistic forecasts lifted it by 7%.

(With inputs from agencies.)