European equities retreat from 5-month high as tech, defence shares drag
(Reuters) -European equities slipped on Wednesday, retreating from a five-month closing high in the previous session, after tech stocks tracked dour performances of their Wall Street peers and as the defence sector faced pressure for a second day.
The pan-European STOXX 600 index was down 0.4%, as of 0707 GMT, with most major bourses trading in the red.
Britain’s blue-chip FTSE 100 dipped 0.2% after data showed UK inflation rose to 3.8% in July, its highest since early 2024 and in line with the Bank of England’s expectations.
U.S. President Donald Trump said Washington might provide air support to Ukraine as part of a peace deal, but ruled out putting troops on the ground.
Shares of defence-linked companies dropped 1.5% in early trade. In the previous session, these stocks suffered their worst day in more than a month, pressured by news of a potential Ukraine-Russia summit, as hopes for de-escalation reduced demand for military-related assets.
Among other stocks, Alcon (NYSE:ALC) slumped 9.8% after the Swiss-American eye-care group cut its 2025 net sales outlook on expected impact of U.S. tariffs.
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