(Reuters) -European shares slipped on Wednesday, with ASML leading losses after a weak business update, while broader investor sentiment remained cautious on concerns over tariff-driven inflation following stronger-than-expected U.S. inflation data.

The pan-European STOXX 600 index fell 0.3% to 543.38 points, as of 0712 GMT.

ASML fell 6.7% after the world's biggest supplier of computer chip-making equipment warned that it may not achieve growth in 2026, even after its second quarter bookings beat market expectations.

The latest earnings forecasts showed on Tuesday that the outlook for European corporate health has deteriorated as U.S. President Donald Trump's most recent tariff statements created further uncertainty for businesses.

Additionally, the U.S. CPI reading weighed on market sentiment, renewing worries over tariff-induced inflationary effects.

Across the Atlantic, focus now turns to producer price data later in the day for further clues on the impact of tariffs on the world's largest economy.

In trade, investors awaited for clarity on U.S.-EU trade talks as the bloc readied retaliatory measures if negotiations with Washington failed.

In the market, European technology stocks declined 1.4%, while auto stocks fell about 1%.

Data showed on Tuesday, Britain's annual rate of consumer price inflation unexpectedly rose to its highest in over a year at 3.6% in June, up from 3.4% in May.