European stocks fell on Wednesday as heightened inflation fears in the United States weighed on risk appetite, outweighing optimism from a batch of solid earnings.
The pan-European STOXX 600 index closed down 0.5%, with most major sectors in negative territory. Technology stocks and banks were among the biggest drags.
The downbeat mood in Europe followed a sell-off on Wall Street on Tuesday, where all three major indexes fell more than 1%. Investors were rattled by data showing that U.S. consumer prices rose at the fastest pace in nearly 13 years in May, raising concerns about a potential overheating of the economy and a more aggressive tightening of monetary policy by the Federal Reserve.
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