European stocks ease from 2-month highs as retailers, luxury stocks weigh

European stocks were little changed on Wednesday as gains in broader stocks outweighed declines in luxury and retail stocks, while investors monitored a tax cut bill in the United States.

The pan-European STOXX 600  closed slightly lower, with retail stocks  weighing heavily on the market, down 0.8%.

London's JD Sports  fell 10.6% to the bottom of the STOXX 600 after posting a 2% drop in first-quarter underlying sales and warned that higher prices in its key U.S. market could hit customer demand.

LVMH , Hermes  and Kering  among others fell over 2% after luxury group Chanel reported a 4.3% drop in its comparable yearly sales.

On the flip side, tech shares were the biggest gainers.

German chipmaker Infineon's  2.3% gain after it said it would work with Nvidia  to develop chips for new power delivery systems inside artificial intelligence data centers provided a boost to the sector.

Meanwhile, worries about the lack of progress on trade deals as the clock ticks down to the end of U.S. President Donald Trump's 90-day tariff respite, as well as a sweeping U.S. tax bill, raised concerns about the country's fiscal health.