(Bloomberg) -- European stocks closed lower, wiping out gains in afternoon trading, as investors weighed mixed economic data across the US and euro area. Utilities slumped after a gloomy update from Orsted A/S.

The Stoxx 600 Index was down 0.2% at the close, with utilities as the worst performers as Danish power generator Orsted posted a record decline after forecasting potential impairments of up to $2.3 billion relating to its US portfolio. 

On a data-heavy day for markets, reports showed inflation slowed less than expected in Germany and quickened in Spain, offering European Central Bank officials a partial picture of the region’s price pressures as they judge whether to raise interest rates again. Meanwhile in the US, data showed the economy expanded at a slower rate than previously thought in the second quarter, fueling speculation the Federal Reserve is nearing the end of its rate-hike cycle. 

Read more: Stagflation Could Endanger Any Rebound in Europe: Taking Stock

“Even though it was expected, the rise in Spanish inflation in August as well as the regional numbers in Germany this morning show that the ECB can yet not lean back,” says Wolf von Rotberg, equity strategist at Bank J. Safra Sarasin. He adds the ECB may pause in September but says another hike in the coming months remains on the table.

Data on Thursday will help complete the view for Europe’s policymakers, starting with France. Inflation there is anticipated by economists to have resurged to 5.4%. 

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