European stocks recorded their largest daily loss in two months on Wednesday, with sentiment affected by the lack of significant progress in negotiations to raise the U.S. debt ceiling, a surge in core inflation in Britain, and further losses in luxury goods stocks. The European Stoxx 600 index closed down 1.8%, marking its worst daily performance since mid-March, as all European local markets declined.
Real estate stocks suffered the biggest losses, with their index dropping 3%, while the tourism, travel, and insurance sectors each fell by more than 2%. The European luxury goods index plummeted 1.7%, hitting its lowest level in seven weeks, as the selling pressure continues in the sector after significant price increases earlier this year.
Democratic and Republican negotiators will meet to discuss raising the U.S. debt ceiling at the White House, according to House Speaker Kevin McCarthy.
