European shares dipped slightly as strong updates from Zara-owner Inditex SA and Danske Bank A/S failed to stir a risk-on mood among investors bracing for key central bank meetings next week.

The Stoxx 600 Index closed down 0.2%, with insurers and health care stocks underperforming, while retailers climbed the most in more than two months. Inditex advanced after it reported an estimate-beating 43% jump in operating profit. Danske Bank shares gained after the lender raised its key target for profitability.

Policy decisions are due from the Federal Reserve and the European Central Bank next week.

"Things are very calm, as markets are in a wait-and-see mood as everyone is waiting for the next Fed meeting and its message on rates hikes," said Thomas Nugent, equities portfolio manager at Mapfre Asset Management. "It's time to go back and look at the big picture of the macro scenario, where we are seeing consumers increasingly under pressure as inflation is taking a toll on spending."

Source : Bloomberg