European Shares Slide As Inflation Accelerates

(RTTNews) - European stocks traded lower on Tuesday after Eurostat data showed Eurozone inflation rose to 2.1 percent last month, climbing above the European Central Bank's 2 percent target for the first time since April driven by higher prices for food, alcohol and tobacco.

The euro was little changed amid bets the ECB will likely keep interest rates on hold at its September 11 meeting.

Traders also shifted focus to upcoming U.S. employment data for clues on the Federal Reserve's next steps.

The pan European STOXX 600 was down 0.8 percent at 547.24 after rising 0.2 percent in the previous session.

The German DAX fell 1.1 percent to 23,763 after climbing 0.6 percent on Monday. Germany's 30-year yield climbed to a 14-year high, tracking a rise in U.S. Treasury yields.

France's CAC 40 was down 0.1 percent at 7,699 ahead of a crucial confidence vote in parliament next Monday.

The outcome of the vote on the government's plan to slash public spending could trigger government collapse, budget plan delays, or even snap elections. Opposition parties have already said they will oppose the austerity budget.

The U.K.'s FTSE 100 dipped 0.4 percent to 9,159 as the 30-year gilt yield hit a 27-year high at 5.680 percent in early trading on rising debt concerns, in a pre-budget blow for chancellor Rachel Reeves.

In corporate news, British Gas owner Centrica fell 1.4 percent after announcing it has extended the life of two of its U.K. nuclear power stations in which it has a 20 percent share.

Low-cost carrier Wizz Air Holdings tumbled 2.6 percent despite reporting a robust 11.4 percent year-on-year increase in passenger traffic for August 2025.

DEUTZ shares surged nearly 7 percent. The German engine manufacturer has agreed to acquire the Sobek Group, a specialist in drone propulsion systems.

Chemical company BASF was moving lower after it has extended a long-term supply contract for cathode active materials produced at its Schwarzheide facility.

Nestle shares fell about 1 percent. The Swiss food giant has dismissed Chief Executive Officer Laurent Freixe, following revelations of a romantic relationship with a company staffer.