European Stocks Slip Amid Corporate Tumbles and U.S. Inflation Anticipation

European stocks experienced a downturn amid disappointing corporate updates and looming U.S. inflation data. The STOXX 600 dipped for a second day, influenced by key declines from Zara owner Inditex and German energy group Siemens Energy. Meanwhile, About You saw significant gains after Zalando acquisition announcement.

European stocks slid further from recent highs on Wednesday as investors grappled with lackluster corporate results and awaited crucial inflation data from the United States.

By 0811 GMT, the pan-European STOXX 600 had decreased by 0.2%, marking its second consecutive day of decline after reaching a seven-week record close on Monday. This mirrored a pause in Asian markets ahead of U.S. inflation data, likely keeping the Federal Reserve on track for another rate reduction. According to CME's FedWatch tool, there's an 85% probability of a 25 basis point rate cut next week.

Shares of Zara owner Inditex plunged over 6% due to missing third-quarter sales estimates, a rare occurrence for the fast-fashion giant. In Germany, Siemens Energy fell 5% after a cautious outlook on the wind sector from U.S. rival GE Vernova. Meanwhile, Adidas experienced a 1.5% drop following a tax investigation raid, while German online retailer Zalando's plan to acquire About You propelled the latter's shares by 65%, though Zalando itself dipped nearly 10%.

(With inputs from agencies.)