European stocks close down 0.4% as FTSE tries to hold on

European stocks closed down 0.4% on Wednesday, with investors anticipating the latest rate call from the ECB. Inflation remains a significant issue for national European central banks, with the Bank of England caught between a rock and a bigger rock.

The German DAX and France’s CAC40 both ended trading down around 0.4%, while the pan-European Stoxx600 index ended the day down 0.3%. London’s FTSE 100 index managed to hold on for the day, ending 0.02% in the red.

The UK’s economy continues to show stickier inflation than expected, with economic calendar data for the British economy failing expectations. The Bank of England is left in a tough spot, with further rate hikes required.

The ECB is also facing rate troubles, with an internal leak indicating it is set to raise its inflation expectations for the continental economy. The automotive sector in Europe provided little support for European stocks, with the EU set to investigate improper electric vehicle subsidies from China.