(fxcue news) - European stocks settled broadly lower on Wednesday, although the U.K. market managed to closed marginally up thanks to data showing a slower than expected increase in inflation in the month of February. The mood was largely cautious in European markets with investors assessing the potential impact of impending reciprocal tariffs that are set to take effect next week. The Spring Statement from British Chancellor Rachel Reeves did not provide any fresh optimism, and hence investors remained cautious and stayed wary of picking up stocks at higher levels. The pan European Stoxx 600 fell 0.72%. The U.K.'s FTSE 100 climbed 0.3%, Germany's DAX tumbled 1.17% and France's CAC 40 ended nearly 1% down, while Switzerland's SMI closed down 0.46%. Among other markets in Europe, Belgium, Denmark, Finland, Ireland, Netherlands, Poland, Russia, Spain, Sweden and Turkiye closed weak. Austria, Greece, Iceland, Norway and Portugal ended higher. In the UK market, Shell climbed about 2.4%. Next, Babcock International, Kingfisher, National Grid, Beazley, Prudential, United Utilities, Rentokil Initial, SSE, Marks & Spencer, Coca-Cola, Croda International, Compass Group, BP and Severn Trent gained 1 to 2%. Admiral Group, Smiths Group, Schroders, Polar Capital Technology, EasyJet, Auto Trader Group, Entain, RightMove, JD Sports Fashion and Experian lost 1 to 2.5%. In the German market, Sartorius tumbled about 5.5%. Infineon, Bayer, SAP, Merck, Porsche, Mercedes-Benz, Siemens Healthineers, Siemens and Deutsche Post lost 2 to 4%. BMW, Heidelberg Materials, Continental, MTU Aero Engines, Adidas, Volkswagen, Commerzbank, Puma and BASF declined 1 to 2%. Porsche ended lower by about 0.8%. The company, which is Volkswagen's largest shareholder, plans to expand its investments and diversify its holdings, after reporting a 20-billion-euro after-tax loss because of the impairments on its holding of Europe's top carmaker. Rheinmetall climbed about 3.2%. Siemens Energy, Zalando, RWE, E.ON, Fresenius, Hannover Rueck and Vonovia gained 0.6 to 1.6%. In the French market, Michelin closed more than 6% down. STMicroElectronics ended lower by about 4%. Schneider Electric, Sanofi and Dassault Systemes lost 2 to 3%. ArcelorMittal, Legrand, L'Oreal, Renault, Essilor, BNP Paribas, Eurofins Scientific, Hermes International and Safran closed down 1 to 2%. TotalEnergies climbed about 1.8%. Unibail Rodamco and Thales also ended with strong gains. Data from the Office for National Statistics showed U.K.'s consumer price index logged an annual increase of 2.8% in February, following January's 3% rise. Prices were forecast to climb again by 3%. Core inflation that excludes prices of energy, food, alcohol and tobacco, was 3.5%. On a monthly basis, consumer prices moved up 0.4%, in contrast to the 0.1% fall in January. Economists had forecast prices to increase 0.5%. Monthly survey data from the statistical office INSEE showed French consumer sentiment weakened in March largely due to the deterioration in households' view about future financial situation. The consumer confidence index fell unexpectedly to 92 in March from 93 in February. The reading was expected to rise to 94. The British finance minister Rachel Reeves today trimmed her plans for spending increases, providing some reassurance for investors. The risks of a global trade war could put fresh tax hikes on the table later this year, she said. Britain's budget watchdog, the Office for Budget Responsibility (OBR), halved its forecast for economic growth in 2025, and raised its forecasts for public borrowing and inflation. The OBR also highlighted the risk that a U.S.-led trade war could hurt Britain's economy. Reeves sought to pin the downgrade on "a changing world", citing the war in Ukraine and uncertainty overhanging the world economy which is at risk of upheaval from U.S. President Donald Trump's trade tariff plans.