Source: Sharecast
The pan-European Stoxx 600 fell 0.07% to 553.24, with Madrid's Ibex 35 the only major index across the continent finishing with gains, albeit only just.
News that Chinese consumer prices fell for the fourth straight month and producer prices registered their sharpest decline in nearly two years hit risk appetite across global markets, with Wall Street benchmarks also opening in subdued fashion in afternoon trade. Chinese export growth also slowed dramatically in May a result of the country's ongoing trade war with the US.
"The Chinese are faced with a challenging task ahead, with the drop-off in exports and ongoing deflationary environment highlighting that both domestic and international consumption for Chinese products are in question," said Joshua Mahony, chief market analyst at Scope Markets.
Eyes were also on a meeting in London between US Treasury Secretary Scott Bessent and Chinese officials aimed at resolving the trade war between the two nations.
"Some kind of accord would be welcome, but they might even be happy if the two sides merely agree to keep talking. To jaw jaw is better than to (trade) war war, it seems," said Chris Beauchamp, chief market analyst at IG.
Market movers
M&A activity in London saw some major moves in stocks. Alphawave shares surged by more than 20% after US chipmaker Qualcomm agreed to buy the semiconductor company for about $2.4bn.
Revolution Beauty spiked 9% after it was confirmed that Mike Ashley’s Frasers Group was one of a number of parties conducting considering a purchase of the cosmetic retailer.
Meanwhile, Spectris rocketed 60% after confirming it has received a takeover proposal from private equity firm Advent International that it would be minded to recommend if a firm offer was made.
Swedish outfit Saab was among the worst performers after Deutsche Bank cut its rating on the European defence sector, with Rolls-Royce, BAE Systems, Rheinmetall and Thales also in the red.