European markets fall as UK inflation holds steady; ASML declines 7%

In this articleLONDON — European stocks were lower Wednesday, continuing negative sentiment seen in the previous trading session.The pan-European Stoxx 600 was down by 0.57% at 12:09 p.m. London time, with all other major bourses in the region falling.Tech stocks fell 3.17%, while banks rose 0.33%.Shares in Dutch semiconductor firm ASML were last down 7.6% after Bloomberg reported that the U.S. is considering sharper trade restrictions for chip equipment firms that are exporting their technology to China as geopolitical uncertainty weighed on the broader chip sector.U.K. inflation came in at 2% on an annual basis in June, according to data released by the Office for National Statistics on Wednesday. This was slightly higher than the forecast 1.9%, but in line with May's 2% reading and the Bank of England's target rate.Following the print, the British pound broke above the $1.3 level against the U.S. dollar for the first time in a year as markets reduced bets on an August rate cut from the Bank of England. Analysts are also expecting a period of growth-friendly policies and political stability in the U.K. under the newly elected Labour government.Dow futures were little changed on Tuesday night, while Asia-Pacific markets traded mixed, with Australia's S&P/ASX 200 reaching an all-time high.In Europe Wednesday, earnings will come from ASML, Mulberry Group and Handelsbanken.