Europe close: Stocks pull back from seven-week high

(Sharecast News) - European stocks snapped a four-day winning streak on Wednesday as investors turned cautious with markets trading at their highest levels in seven weeks.

Major indices in London, Paris and Frankfurt finished in the red, with the latter pulling back from hitting another record high the previous session, offsetting small gains in Milan and Madrid.

As a result, the Stoxx 600 benchmark finished 0.24% lower at 543.88. The index finished Tuesday's session at 545.17 - its highest close since 27 March - after the US and China agreed a temporary truce in their trade war, with both slashing tariffs on imports for 90 days.

"Investors took a breather following a recent surge driven by easing global trade tensions," said Patrick Munnelly, partner of market strategy at Tickmill Group. "Attention is now shifting to corporate earnings and the broader economic landscape."

Very little economic data was released during Wednesday's session. The only notable publication was the German inflation report from Destatis, which showed that price pressures eased in April as energy prices cooled.

The German year-on-year change in the consumer price index ticked lower to 2.1% from 2.2% in March and 2.3% in February - in line with economists' expectations.

Market movers

Burberry was the standout performer of the day in Europe as the British luxury brand announced plans to slash up to 1,700 jobs as part of a cost-cutting programme unveiled alongside its full-year results.

The company posted a �66m pre-tax loss for the year to March 29 compared to a profit of �418m a year ago, with revenues down 17% to �2.46bn. However, sales fell less than expected in the fourth quarter, helped shares to jump 17%.

Shares in TUI fell 10% after the German travel group reported a slowdown in summer bookings and a wider quarterly net loss, although it maintained its full-year guidance.

French train manufacturer Alstom also tanked 16% as investors shrugged off forecast-beating results and focused on disappointing guidance for the current financial year. The firm is targeting underlying revenue growth of just 3-5% this year.