European stocks cautious as traders track earnings, inflation data

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European markets were slightly lower on Wednesday as traders monitored corporate earnings and developments in the Middle East, along with key inflation data.

slipped 0.2% in early trade, with tech stocks shedding 1.7% to lead losses while oil and gas stocks added 0.5%.

U.K. inflation came in at 6.7% in September, slightly ahead of expectations and unchanged from the previous month. The largest downward contributions came from food and non-alcoholic beverages, whose prices fell month-on-month for the first time since September 2021, the Office for National Statistics said Wednesday. Rising fuel prices made the largest upward contribution to the headline rate.

"As we have seen across other G7 countries, inflation rarely falls in a straight line, but if we stick to our plan then we still expect it to keep falling this year," U.K. Chancellor of the Exchequer Jeremy Hunt said in a statement.CNBC Pro: Deutsche Bank just cut its price target on nearly 30 global stocks — and upgraded 1

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