European markets fall ahead of ECB decision, U.S. inflation data; Credit Suisse down 5%

LONDON — European stocks fell on Wednesday as investors digested a profit warning from Credit Suisse and prepared for the European Central Bank's latest policy decision and a reading of U.S. inflation.

The pan-European Stoxx 600 fell 0.6% by late morning, with financial services shedding 2% while retail stocks bucked the downward trend to add 1.2%.

Credit Suisse shares fell more than 5% after the embattled lender warned that it is likely to post a group-wide loss for the second quarter on the back of the war in Ukraine and rising interest rates.

Danish shipping giant AP Moeller-Maersk fell 7.7% to the bottom of the Stoxx 600 as an easing of supply chain restrictions is expected to soften container rates.

At the top of the European blue chip index, tech investment company Prosus jumped 8% to track gains for Chinese tech giant Tencent, in which it has a substantial stake.

Gambling company Kindred Group jumped 7% after securing a gambling license in the Netherlands.

International markets have pulled back this week amid nervousness over forthcoming U.S. data releases this week, including the latest inflation reading on Friday.

May's consumer price index in the U.S. is expected to be just slightly cooler than April, and some economists are expecting it could confirm that inflation has peaked.

The University of Michigan consumer sentiment index, also due Friday, will also be closely watched by investors.

Investors are also looking ahead to the ECB's monetary policy announcement on Thursday, with policymakers expected to confirm intentions to raise interest rates in July.

Shares in Asia-Pacific rose in Wednesday trade, with Hong Kong's Hang Seng index leading gains as Chinese tech stocks listed in the city soared.

Meanwhile, U.S. stock futures fell in early premarket trading after two consecutive days of gains on Wall Street.