European stocks close lower amid uncertainty about Middle East peace talks

European stock markets closed lower Wednesday as uncertainty surrounding efforts to end the war in the Middle East outweighed relief from US inflation data.

The benchmark Stoxx Europe 600 index declined 0.16% to finish at 659.48 points.

Germany’s DAX 40 fell 0.23% to 26,331.07 points, while France’s CAC 40 dropped 0.46% to 8,674.94.

Italy’s FTSE MIB 30 edged down 0.01% to 53,698.66, and the UK’s FTSE 100 lost 0.1% to close at 10,833.15.

Spain's IBEX 35 index also fell 0.05% to end midweek at 20,204.4.

The euro traded at $1.1529 as of 1640GMT, down 0.12% against the US dollar.

Investors continued to monitor diplomatic efforts involving the US and Iran, as the lack of progress toward an agreement and uncertainty about the reopening of the Strait of Hormuz kept geopolitical and energy-supply risks elevated.

US inflation figures released during the session provided some support to global risk appetite.

The US Consumer Price Index rose 0.1% month-on-month and 3.4% year-on-year in July, both in line with expectations. Annual inflation eased from 3.5% in June, while core inflation slowed to 2.5% from 2.6%, according to the US Bureau of Labor Statistics.

On the corporate side, shares of Danish wind turbine maker Vestas jumped nearly 20% after the company reported a 26% annual increase in second-quarter revenue to €4.72 billion ($5.45 billion).

The company raised its full-year adjusted operating margin forecast to 7% - 9% from 6% - 8%, and announced a €400 million share buyback program.

In Germany, annual consumer inflation accelerated to 2.8% in July from 2.3% in June, while prices increased 0.8% on a monthly basis, according to the Federal Statistical Office.

Energy prices rose 8.3% year-on-year, becoming the main driver of inflation, while motor fuel prices surged 23%. Heating oil prices increased 34.7%. Food prices rose 0.4%, and services prices climbed 2.9%, while core inflation, excluding food and energy, stood at 2.4%.