European shares hit 3-week lows

A fresh wave of selling hit European stock markets on Wednesday as little progress in the U.S. debt ceiling negotiations, a jump in UK core inflation and more losses in heavyweight luxury names hurt risk sentiment.

The Europe-wide STOXX 600 index (.STOXX) fell 1.2% to hit a nearly three-week low, with all regional markets trading in the red.

Wall Street stocks finished sharply lower on Tuesday and short-term Treasury yields advanced as investor jitters grew over a lack of progress in the US debt-limit talks, reported Reuters.

Real estate stocks (.SX86P) fell the most in Europe, down 2.1% as government bond yields jumped after UK inflation.