European stock markets closed lower Wednesday as investors digest inflation data and mixed signals from U.S. Federal Reserve officials on the trajectory of interest rate hikes.
The pan-European Stoxx 600 index closed 0.1% lower, with mining stocks down 1.3% after recent gains on Chinese economic data. Tech stocks made the biggest losses, down 1.9%, while insurance led gains with a 1.1% uptick.
European markets
U.K. consumer price inflation came in at 10.1% in March, down from 10.4% in February. Economists polled by Reuters expected a fall to 9.8%.
Figures on Tuesday showed U.K. wage growth slowed by less than expected in the three months to March, which economists said may complicate the Bank of England's decision on whether to pause hikes at its May monetary policy meeting.
Atlanta Federal Reserve President Raphael Bostic told CNBC that he sees one more rate hike of 25 basis points, before pausing to see its impact on the economy. That would take the U.S. Federal Funds rate to 5% to 5.25%.
Bostic's words come as St. Louis Federal Reserve President James Bullard told Reuters that he favors a higher terminal rate of between 5.50% and 5.75%.
The Stoxx 600 hit a 14-month high during Tuesday's session, according to Eikon data. Investors have maintained their risk-on appetite despite continued inflationary headwinds and central banks being pushed to continue considering rate hikes.
Paul Gambles, co-founder and managing director of MBMG Group, told CNBC's "Squawk Box Europe" it was in large part because market participants were nonetheless expecting a coming pivot on monetary policy — and also that the pivot will be effective, and inflation will become muted while economic growth begins to recover.
U.S. stock markets ticked downward as traders weighed the latest round of earnings. Asia-Pacific markets closed mixed.