European Markets: Tech Struggles, Resource Stocks Rise Amid Inflation Bets

European shares saw minimal change with tech stock losses balancing strong resource sector gains. The UK's inflation data prompted speculation on interest rate cuts, boosting markets. Banks significantly supported STOXX 600, reflecting 2008 levels, while mining and energy stocks surged, contrasting weakening tech and automotive sectors.

European shares remained relatively stable on Wednesday, as losses in technology stocks were countered by gains in the basic resources sector. Concerns lingered over the elevated valuations of AI-fueled tech companies. The UK market saw advances following inflation data that reinforced expectations of interest rate cuts.

The pan-European STOXX 600 index closed flat at 579.84, having flirted with record highs earlier in the session. Regional indices showed mixed results with the UK's FTSE 100 rising 0.9%, while Germany's DAX and France's CAC 40 saw declines of 0.5% and 0.3%, respectively. British consumer price inflation data, showing an unexpected drop, spurred investor speculation on an upcoming interest rate cut.

Bank stocks provided a significant boost to the STOXX 600, climbing 1% and nearing levels last reached in 2008. HSBC in London saw a 2.7% rise after receiving a broker rating upgrade. Meanwhile, mining stocks led gains, bolstered by rising silver and gold prices. Conversely, tech stocks fell 1.7% and automotive stocks also faced pressure. Global investors continued to diversify away from highly valued U.S. tech sectors.