European stocks fell on Wednesday, with the Stoxx 600 index decreasing by 0.4% at the close. The benchmark index briefly turned positive earlier in the day after data showed a year-on-year decline in consumer price inflation in the world's largest economy in April.
Investors are closely monitoring ongoing negotiations aimed at raising the U.S. federal government's debt ceiling of $31.4 trillion, which has entered a new phase, as the Treasury Department warns of the possibility that the government may be unable to meet its obligations as early as June 1.
The personal and household goods sector and the food and beverage sector were the most affected, while technology and real estate stocks were the only sectors to see gains.
Shares of Swedish property company SBB fell for the third consecutive session, totaling a 46% loss amid concerns over the group's debt and the sale of shares by a senior executive. However, better-than-expected corporate earnings supported the stocks significantly.
Alcon's stock was among the biggest gainers on the Stoxx 600, rising by 7.4% after the company announced better-than-expected results for the first quarter.
Shares of Credit Agricole increased by 5% after the results of the second-largest listed French bank exceeded expectations for the first quarter, driven by an increase in trading revenue.
