European Markets Tumble Amid Economic Uncertainty

European stock markets closed on a sour note, with the STOXX 600 hitting a three-month low. Rising energy shares were offset by losses in real estate, as focus lay on the U.S. inflation data that could influence the Federal Reserve's interest rate decisions. Technology and autos were major decliners.

European equities took a hit on Wednesday, with the STOXX 600 closing at its lowest point since August, as energy sector gains were overshadowed by losses in real estate. All eyes were on the U.S. inflation data, which might sway the Federal Reserve's future interest rate decisions.

The pan-European index dipped 0.1% to 501.59 points, while Germany's DAX and France's CAC 40 also registered losses. Technology and automobile stocks led declines among subsectors. In contrast, energy shares climbed 1.3%, providing some resistance to overall losses.

Traders are recalibrating their expectations for December's potential rate cuts by the Federal Reserve. Elevated bets on President-elect Donald Trump's anticipated economic measures contributed to inflation concerns, adding pressure to European markets.

(With inputs from agencies.)