European stocks fell on Wednesday, October 18, affected by escalating fears of escalating conflict in the Middle East and by a decline in shares of the Dutch company ASML after tepid expectations from the chip maker overshadowed the impact of optimistic Chinese economic data.

The European STOXX 600 index fell 0.2% by 07:03 GMT.

The attack on a hospital in Gaza, which killed hundreds of Palestinians, increased the risks surrounding US President Joe Biden's visit to Israel on Wednesday.

ASML shares fell 3.7% as the company warned of stable sales in 2024, after announcing profits in line with analysts’ expectations in the third quarter.

Shares of luxury goods companies exposed to China, such as Hermes and Richemont, rose between 0.2% and 0.8%, supported by better-than-expected growth data in the world's second-largest economy.

Adidas shares jumped 4.7% after the sportswear company raised its revenue forecasts and lowered its loss forecasts for 2023.

Data showed that annual consumer price inflation in Britain remained at 6.7% in September, contradicting economists' expectations of a further deterioration.