European Shares Dip Amid China Concerns and Inflation Focus

European shares ended an eight-day winning streak, with mining losses triggered by lackluster Chinese trade data offsetting previous gains from stimulus hopes. The STOXX 600 fell 0.2%, with major declines in resources and notable movements in healthcare and automobile stocks. Attention shifts to upcoming U.S. inflation data affecting interest rate decisions.

European shares halted an eight-sessions streak of gains on Tuesday, driven down by losses in the mining sector. The previous rally, fueled by China's stimulus promises, waned as disappointing trade data from the region emerged. Analysts now turn their eyes towards U.S. inflation statistics.

The pan-European STOXX 600 index decreased by 0.2% to 520.02 at 0810 GMT, with the FTSE 100 in the UK dropping by 0.5%, leading declines across Europe. Basic resources took the hardest hit due to weak demand signals from China, while sectors such as healthcare and automobiles saw minor gains of 0.4% and 0.2%, respectively.

Germany's DAX index also fell by 0.2% following stagnant domestic inflation at 2.4% for November, matching early estimates. U.S. inflation data set for release on Wednesday may sway investment trends by reinforcing expectations of an interest rate cut anticipated on December 18.

(With inputs from agencies.)