© Reuters. FILE PHOTO: Traders look at computer screens at Madrid’s bourse, Spain, June 29, 2015. European stock markets slid lower on Monday, with southern European banks hit particularly hard, after Greece closed its banks and imposed capital contr

European shares ended Wednesday on a dour note, with the STOXX 600 closing at a three-month low as rising energy shares countered real estate losses, while focus remained on a U.S. inflation print that could alter market expectations about the Federal Reserve’s interest rate path, News.Az reports citing Investing.

The pan-European STOXX 600 index closed down 0.1% at 501.59 points, its lowest level since Aug 13.

Most regional bourses also ended lower, with Germany’s DAX losing 0.2%, while France’s CAC 40 was down 0.1%.

Heavyweight technology stocks were among the major sub-sector decliners, dropping 1%, while autos fell 1%.

Rate-sensitive real estate stocks were the biggest drag on the index, losing 1.4%.

Energy stocks, however, added 1.3%.

A U.S. October inflation reading showed consumer prices increased 0.2% in October, and was in line with expectations.

Traders currently see a 79% chance of the Fed cutting interest rates by 25-basis-points in December, compared to a more than 84% chance seen a month ago, as per the CME FedWatch Tool.

Rate expectations have shifted recently as markets continue to price in U.S. President-elect Donald Trump’s expected policies of lower taxes and trade tariffs, that are viewed as inflationary.

European shares have come under pressure recently as investors assessed the likelihood of tariff increases after Trump’s sweeping victory last week.

“We’re in this scenario where we’re not quite sure where we’re going. Investors are having a little bit of jitters,” said Daniela Hathorn, senior market analyst at Capital.com.

News.Az