European stocks fell on Tuesday as a hotter-than-expected US inflation reading increased pressure on central banks and clouded the equity outlook. The Stoxx Europe 600 Index slipped 1.0% in London, with technology and retail sectors leading the decline in a broad risk-off move.

Only three out of 20 Stoxx 600 sectors ended in the green, including food and beverage as well as healthcare. Vodafone plunged while investors piled into defensive sectors amid mounting uncertainty about monetary policy paths and economic growth prospects.

The broader market reflected growing anxiety about persistent inflation that could force central banks to maintain higher interest rates for longer. Banks struggled as investors recalibrated expectations for rate cuts, with the financial sector facing pressure from both rate concerns and potential economic slowdown effects.