12:08 PM EDT, 05/21/2025 (MT Newswires) -- European stock markets closed mixed in Wednesday trading as the Stoxx Europe 600 edged 0.04% lower, Germany's DAX gained 0.36%, the FTSE 100 was up 0.06%, France's CAC 40 was down 0.40%, and the Swiss Market Index declined 0.22%.

A "marked spike in uncertainty" in global trade, defense, international cooperation, and regulation could "prove challenging" for the Euro area's financial stability, the European Central Bank said in its latest Financial Stability Review, which was released Wednesday.

"Frequent shifts and reversals in tariff policy, alongside significant changes in the geopolitical environment, could have major economic and financial impacts," the ECB said. "While global macroeconomic imbalances remain a long-standing issue in the policy debate, it is not clear that tariffs are the best-placed policy instrument to address them."

Meanwhile, the European Union was expected to provide the US with a revised trade proposal, as it looks to boost the momentum of talks, Bloomberg reported Wednesday, citing people familiar with the matter. The new proposal targets key US issues, including environmental standards, international labor rights, economic security and the gradual, mutual reduction of tariffs to zero for non-sensitive agricultural products, Bloomberg reported, citing the people.

In the UK, the annual inflation rose 3.5% in April, up from 2.6% in March, according to the Office for National Statistics. Annual core inflation, which excludes energy, food, alcohol and tobacco, rose 3.8%, up from 3.4% in March.

And in corporate news, shares of JD Sports Fashion fell 10% on the FTSE 100 in Wednesday's trading session after the retailer reported a 2% drop in sales for Q1 and warned that it may have to charge higher prices as a result of US tariffs.

"The market remains volatile and visibility on the overall potential impact from tariffs is low," Chief Executive Regis Schultz said in a statement.

French luxury goods company LVMH is warning investors and analysts that after missing revenue estimates for the most recent quarter demand remains soft, according to Bloomberg, citing people familiar with the matter.

LVMH did not immediately respond to a request for comment from MT Newswires.

NatWest Group said Wednesday it completed the pricing of $1.25 billion of 5.115% senior callable fixed-to-fixed reset rate notes due 2031 and $300 million of senior callable floating notes due 2029. Shares of the British financial services company closed 0.65% higher in London.