European stocks are set to see further downside on Wednesday, tracking losses in the U.S. and Asian markets, amid renewed concerns about the health of European banks.
In economic news, shop prices in the U.K. picked up at a faster annual pace in August, fresh data showed on Wednesday. The British Retail Consortium - Nielsen Shop Price Index increased 1.7% from a year earlier, faster than the 1.5% rise in July, due to a surge in food prices.
Food inflation increased to 3.8% from 2.5% in July, the highest since July 2009, while non-food inflation slowed to 0.5% from 1%.
Meanwhile, the German foreign trade balance showed a surplus of EUR 13.5 billion in July, down from June's EUR 14.2 billion surplus, data from the Federal Statistical Office showed Wednesday. However, the latest figure was bigger than the expected EUR 13 billion surplus.
Separately, data released earlier today showed that the slowdown in the U.K. job market continued in August with permanent job placements rising at the weakest rate for 10 months.
Investors await industrial production data from Germany along with industrial output data from the U.K. and trade data from France for more clues on the state of the domestic economy.
In corporate news, Galapagos NV announced that it has agreed to acquire GlaxoSmithKline Plc's state-of-the art research centre in Zagreb, Croatia.
Belgium's property investor Cofinimmo NV raised EUR50 million via a private placement of non-convertible bonds.
Dassault Systemes SA said trucks and buses manufacturer Scania has integrated production design, product development, processes and manufacturing using Dassault Systemes' Product Lifecycle Management, or PLM, solutions. British mobile network operator Vodafone Group Plc sold its minority stake in China Mobile Ltd, China's largest mobile phone company, for about US$6.6 billion.
The European markets ended in the red Tuesday, led by banks amid worries about fresh capital requirements after the Federal Association of German Banks said that ten of the nation's biggest lenders may need to raise as much as EUR 105 billion, in order to meet new regulatory standards.
The U.K.'s FTSE 100 shed 0.57%, the German DAX declined 0.60% and France's CAC 40 ended down 1.11%. On Wall Street, the major averages fell around a percent to open the Labor Day-shortened week on Tuesday, as investors locked in gains following last week's winning streak.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.