(Reuters) -European stocks retreated from two-month peaks on Wednesday, weighed down by a drop in Julius Baer shares after the Swiss bank revealed credit portfolio charges, while investors kept an eye on U.S. trade developments and tax bill debate.
The pan-European STOXX 600 was down 0.2%, as of 0721 GMT, led by auto and retail stocks.
Shares of Julius Baer slid 5.6% after the lender reported a 130 million Swiss franc ($156.36 million) charge from a credit portfolio review and announced the replacement of its chief risk officer.
JD Sports slumped 8.4% to the bottom of the STOXX 600 after the British sportswear retailer posted a 2% fall in first-quarter underlying sales and warned that higher prices in its key U.S. market could hit customer demand.
Further spooking investors, data showed British inflation surged by more than expected in April, including in key areas closely watched by the Bank of England, complicating its path toward gradual interest rate cuts.
Investors are worried about the lack of progress on trade deals as the clock ticks down to the end of U.S. President Donald Trump’s 90-day tariff respites, as well as a sweeping tax bill that has raised concerns about the fiscal health.
German chipmaker Infineon rose 1.7% after it said it would work with Nvidia to develop chips for new power delivery systems inside artificial intelligence data centers.
Marks & Spencer slipped 3.3% after the British retailer said a “highly sophisticated cyber” attack would cost it about 300 million pounds ($403 million) in operating profit.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sherry Jacob-Phillips)
