France, Germany stocks hit record highs after U.S. CPI data

The pan-European STOXX 600 slid 0.2 per cent by the close, as traders pulled back bets the Fed could start interest rate cuts as soon as March after the U.S. consumer prices report

France and Germany's benchmark stock indexes briefly hit record highs on Tuesday after data showed U.S. consumer prices unexpectedly increased last month, adding to nervousness in a week packed with interest rate decisions by major central banks.

The pan-European STOXX 600 slid 0.2 per cent by the close, as traders pulled back bets the Fed could start interest rate cuts as soon as March after the U.S. consumer prices report.

France's CAC-40 index dropped 0.1 per cent after gaining 0.4 per cent and reaching an all-time high of 7,582.47 points intraday.

Germany's DAX added 0.3 per cent and hit a record high of 16,837.18 points, before closing the session flat.

Also weighing on the market, British wage growth slowed by the most in around two years, though pay is probably still rising too fast for the BoE to relax its stance against cutting interest rates.

I am expecting all the central banks to remind markets they could still raise if they want to, said Giles Coghlan, chief market analyst at brokerage GCFX.

The last thing they want to do is to signal they have won the inflation battle prematurely, because that will just allow markets to run positive on risk.

Carl Zeiss Meditec climbed 6.5 per cent after the medical technology company reported higher annual revenue and a more optimistic forecast.

Italy's Banco BPM gained 1.2 per cent after pledging to moderately grow profits through 2026.

Novo Nordisk, the producer of obesity drug Wegovy, dropped 1.2 per cent after a study showed patients regained weight after stopping rival Eli Lilly's weight-loss drug.

AstraZeneca added 0.8 per cent on plans to buy U.S.-based vaccine developer Icosavax in a $1.1 billion deal.

Hargreaves Lansdown dropped 6.7 per cent after Britain's market watchdog expressed concerns about the amount of interest and fees charged by some investment platforms.