By Khushi Singh and Ankika Biswas
(Reuters) -Europe's benchmark stock index fell on Wednesday as a raft of downbeat corporate earnings bruised sentiment, while investors globally braced for crucial euro zone and U.S. inflation data later in the week for fresh clues on interest rate outlooks.
The pan-European STOXX 600 closed 0.3% lower at a near one-week low. However, Germany's DAX raged on with a 0.3% advance, hitting a fresh record high, boosted by a 3.9% jump in planemaker Airbus.
Among sectors, real estate was the worst-hit, falling 1.8% to a three-month low, as sentiment took a beating after Taylor Wimpey (LON:TW) reported lower annual profit and said it will build fewer homes this year.
The British homebuilder lost 4.8%. This, coupled with a 13.3% drop in UK's Reckitt on missing fourth-quarter like-for-like net sales expectations pulled the broader personal and household goods index 1.2% down.
Technology lost 1.4%, with most components falling after Tuesday's strong gains. Just Eat Takeaway (LON:JETJ) slipped 1.8%, with one trader citing the lack of a new share buyback programme even though the food-delivery firm's updated outlook met expectations.
"Disappointing earnings have added to any data concerns and provided the excuse for adopting a more defensive positioning," said Stuart Cole, chief macro economist at Equiti Capital.
The STOXX 600 has eased from an all-time high hit last week as lacklustre earnings deepened concerns over the state of businesses amid persistent economic worries ahead of major inflation data.
The Federal Reserve's preferred inflation gauge- core personal consumption expenditure (PCE) is due on Thursday, while the euro zone data is scheduled for Friday.
"Any stronger-than-expected inflation data could see markets slip further, but it needs to be taken in the context of the incredible run in equities," Cole added.
ECB Vice-President Luis de Guindos acknowledged slowing inflation but called for further confirmation before cutting rates. Slovakia's central bank chief Peter Kazimir echoed a similar view, suggesting holding off on cuts until June.
Among individual stocks, payments firm Worldline tumbled 10.2% following a full-year loss.
British wealth manager St. James's Place nosedived 18.6% after swinging to an annual loss, while Casino Guichard slumped 21.9% after a deeper 2023 net loss.
Teleperformance slumped 14.1% on concerns about artificial intelligence disruption to the French call centre firm's business.
Swisscom dipped 1.4% following exclusive talks to buy all of Vodafone (LON:VOD) Italia for 8 billion euros ($8.7 billion) and merge it with its Italian subsidiary Fastweb.
Danish bank Sydbank climbed 9.5% after better-than-expected dividend and fourth-quarter results, aiding a 0.5% rise in banks sector.