European shares closed mixed as investors await key U.S. inflation data later this week, with the Stoxx Europe 600 ending down 0.3% at 457.04, though major German, Italian and Spanish indexes rose in line with gains in U.S. stocks. "Global stock markets saw a lacklustre, slightly negative session as volatility slides to January 2020 lows," writes Axel Rudolph, senior market analyst at IG. Meanwhile, the euro rose to its highest level since mid-August at $1.1003 after U.S. Federal Reserve governor Chris Waller said a weakening U.S. economy should lower inflation. Gains in industrial stocks helped lift Germany's DAX by 0.2% and France's CAC 40 lost 0.2%.
The FTSE 100 closed Tuesday down 0.07% in another soft session for markets in Europe. The index dipped on the back of more light profit taking, as the end of a strong month for stock markets draws close, CMC Markets UK chief market analyst Michael Hewson says in a research note. "The FTSE 100 has struggled, slipping briefly to a 2-week low, with weakness in the luxury sector acting as the main drag after HSBC cut its outlook on the sector due to concerns that demand is likely to be subdued for the next five to six months," Hewson says. On the plus side, Rolls-Royce shares have seen another decent uplift, rising to a four-year high after upgrading full-year expectations, Hewson says.