Europe close: Stocks slip at end of choppy session

(Sharecast News) - European equities slipped on Wednesday as softer eurozone inflation failed to lift sentiment ahead of Nvidia's results, with investors remaining wary of stretched valuations in the artificial intelligence sector.

The Stoxx 600 edged down 0.03% to 561.71, while Germany's DAX dipped 0.08% to 23,162.92.

France's CAC 40 fell 0.18% to 7,953.77 and London's FTSE 100 declined 0.47% to 9,507.41.

As Russ Mould at AJ Bell noted, "Investors will breathe a sigh of relief that the market sell-off has lost momentum," although he warned that "the key question is whether this is simply the calm before the storm," with Nvidia's update having "the potential to whip up a tornado across global markets."

Sentiment remained fragile after a weak run across global indices, with Patrick Munnelly at TickMill highlighting that "risk sentiment remains subdued ahead of Nvidia's earnings report, a pivotal moment for market stability, as worries over lofty valuations triggered a selloff that erased nearly $1.6trn from global markets."

Inflation eases in the eurozone, UK

In economic news, Eurostat confirmed that eurozone inflation eased to 2.1% in October from 2.2% in September, while inflation across the wider EU slipped to 2.5% from 2.6%.

Services made the largest contribution, while energy prices were broadly flat.

France and Italy posted some of the lowest rates, at 0.8% and 1.3% respectively, while Germany's inflation eased to 2.3%.

Spain was an outlier, with inflation rising to 3.2%.

The figures reinforced expectations that the European Central Bank is nearing the end of its tightening cycle.

In the UK, inflation slowed for a second month, offering further support to expectations of a December rate cut by the Bank of England.

CPI eased to 3.6% in October from 3.8%, while core inflation dipped to 3.4%.

Services inflation fell to 4.5%, although food prices quickened.

ONS chief economist Grant Fitzner said the slowdown was driven mainly by gas and electricity prices rising more slowly than a year earlier.

Munnelly noted that while the data "doesn't provide major insights that would strongly influence expectations for a December BoE rate cut," the outcome "aligned closely with the Bank of England's November Monetary Policy Report forecasts," leaving governor Andrew Bailey room to justify a shift in voting if necessary.

Economists also pointed to political uncertainty ahead of Rachel Reeves' upcoming Budget, which could influence the BoE's next move.

The property market continued to cool as UK house price inflation slowed to 2.6% in the year to September from 3.1% in August.

London remained a drag with a 1.8% annual decline, while Scotland and Wales posted stronger growth.

UK private rents rose 5.0% in the year to October, easing slightly from the previous month.

Ocado manages gains, Vivendi slumps on court ruling reports

In equities, Ocado rose 2.28% as the shares stabilised after Tuesday's 17% plunge, sparked by US partner Kroger's decision to close three automated warehouses.

NKT surged 17.06% after strong third-quarter results.

WH Smith rebounded 7.17% after announcing CEO Carl Cowling would step down following an accounting review into a �30m overstatement at its North America unit.

Kering dropped 4.21% after CEO Luca de Meo warned that returning to growth would require downsizing its store network and reducing dependence on Gucci.

Smiths Group slipped 0.98% after unveiling a �1bn share buyback and reporting 3.5% organic revenue growth.

Nokia fell 6.98% after outlining a new AI-focused strategy and a profit target of �2.7bn to �3.2bn by 2028.

Vivendi slumped 13.61% after reports suggested a court may rule in favour of Bollor� Group in its dispute over whether it is the company's controlling shareholder, a decision that could end speculation over a mandatory takeover bid.

Reporting by Josh White for Sharecast.com.