European Stocks Dip Amid Inflation Concerns and Upcoming Fed Minutes

European stocks fell on Wednesday morning due to an unexpected British inflation reading, ahead of Federal Reserve meeting minutes and Nvidia earnings. Britain's FTSE 100 dropped 0.6%, while Marks & Spencer reported a 58% rise in annual profit. Investors are cautious about future market rallies.

European stocks slipped in early deals on Wednesday as a stronger-than-expected British inflation reading dampened the mood ahead of release of the Federal Reserve's meeting minutes and AI darling Nvidia's earnings.

The continent-wide STOXX 600 index dipped 0.3% as of 0705 GMT, with Britain's FTSE 100 leading losses among regional markets with an 0.6% drop. Data showed inflation in Britain fell by a less-than-expected 2.3% in April, prompting traders to cut their bets on a Bank of England interest rate cut next month.

Investors are awaiting minutes from the Fed's last policy meeting as well as Nvidia's quarterly earnings to gauge if the recent rally in markets could continue. Among single stocks, Swiss Life dipped 1.8% after Switzerland's largest life insurer narrowed its 2024 outlook for fee income.

Marks & Spencer jumped 7% after the British retailer reported a 58% rise in annual profit as its strategy to re-shape the business delivered strong sales growth in both its food and clothing divisions.