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Europe markets fall; chip firms tumble as ASML reports bookings miss

European markets slipped into the red on Wednesday as uncertainty over the direction of U.S. trade tariffs continued to dent sentiment.

The pan-European Stoxx 600 index was 0.6% lower at 1:31 p.m. U.K. time following two strong session gains. Critical chip firm ASML dropped 4.6% after it missed expectations on net bookings and flagged uncertainty around U.S. trade. Industry peer ASM International was pulled 3.8% lower.

U.K. inflation data for March came in at 2.6% in March, according to figures published by the Office for National Statistics on Wednesday, below the 2.7% forecast in a Reuters poll.

Investors are meanwhile assessing the latest Chinese growth data, as well as industrial production figures and retail sales amid a new era of tariffs under U.S. President Donald Trump.

Chinese state data out Wednesday showed the economy expanded by a better-than-expected 5.4% in the first quarter, although the tariff threat prompted major investment banks to cut the country’s annual growth outlook.

Asia-Pacific markets traded mostly lower overnight, while U.S. stock futures slipped as investors looked ahead to the release of a key retail sales report and more earnings from the first-quarter season.

In extended trading, shares of Nvidia dropped more than 6% after the chip giant said it will post a $5.5 billion quarterly charge related to exporting its H20 graphics processing units to China and other nations.

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