European stock markets narrowed their losses due to slowing inflation, with mining stocks falling.

Due to the euro zone inflation cooling more than expected, providing support for further interest rate cuts, European stock markets narrowed their losses. Mining stocks fell, while defensive sectors such as real estate and telecommunications outperformed the broader market. Data showed that consumer prices rose 1.9% year-on-year in May, lower than April's 2.2% and also below the median of 2% predicted by Bloomberg surveyed economists. The STOXX 600 index fell 0.3%, after falling as much as 0.5% earlier.