European stocks traded lower in their early session on Wednesday with negative sentiment after the U.K. announced that inflation had climbed to a fresh 40-year record high in July.
As of 16:33 BKK time, DAX lost 0.43%, FTSE shed 0.15%, CAC fell 0.27% and STOXX600 dropped 0.08%.
In the meantime, Dow Jones Futures fell 0.33%, S&P 500 Futures decreased 0.41% and Nasdaq Futures slipped 0.50%.
Earlier today, the annualized consumer price index in the U.K rose 10.1%, according to estimates published by the Office for National Statistics on Wednesday, which was higher than a Reuters consensus of 9.8% and a record of 9.4% in June.
On a monthly basis, inflation rose 0.9%, up from 0.8% in June, which was also higher than a forecast of 0.6% rise
According to the Office for National Statistics, higher inflation in July was largely contributed by rising food prices.
The Bank of England had already made six consecutive rate hikes in an attempt to slow down inflation. The central bank projected that the U.K. will enter its longest recession since the global financial crisis in 2008 this fourth quarter.
