Europe markets close lower; luxury stocks drop as LVMH results disappoint; Tate & Lyle up 8%

European market closed lower Wednesday, with chip stocks and luxury goods leading losses following sales warnings.

The pan-European Stoxx 600 index ended slightly lower, down 0.15%, with sectors and major bourses mixed.

The FTSE 100 closed up 0.97%, after the latest U.K. data showed the inflation rate dropped sharply to 1.7% in September. The steep fall from the 2.2% print seen in August adds to expectations that the Bank of England will cut rates in November.

Looking at individual stocks, shares of LVMH closed 3.7% lower Wednesday, making it one of the worst performers on the Stoxx 600, after the luxury group reported a 3% drop in third-quarter sales.

Meanwhile, shares of British food supplier Tate & Lyle jumped more than 13% on Wednesday afternoon amid media reports the U.S. private equity firm Advent International is preparing a takeover offer. The stock closed up 8.3%.

Also among the better performing stocks was British hotel group Whitbread, which added 6%, after it raised its interim dividend and announced a £100 million ($129.95 million) share buyback program.

The mixed sentiment among Europe’s major bourses follows declines on Wall Street Tuesday and comes as most Asia-Pacific markets traded lower overnight, with Japan’s Nikkei leading losses.

U.S. stocks moved slightly higher Wednesday as Wall Street looked to see whether equities can be rebound to record highs seen on Monday. The earnings season continues, with Morgan Stanley due to report later today.

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