The pan-European Stoxx 600 climbed 0.3% to hit its highest point since early May, food and beverages leading gains with a 1% jump while oil and gas stocks slipped 0.6% in early trade.

European Union leaders agreed on Tuesday to nominate International Monetary Fund (IMF) Managing Director Christine Lagarde as the new head of the European Central Bank (ECB).

· Asian shares fell on Wednesday as initial enthusiasm over the latest U.S.-China trade truce was overtaken by fresh concerns over Washington’s threat of tariffs on additional European goods.

Global growth concerns also weighed on investor confidence, with South Korea the latest trade-reliant economy to cut its economic growth and export targets, a day after weaker factory readings worldwide.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.3% lower, while Japan’s Nikkei slipped 0.6% in early trade.

Still, a rally in global stocks following the U.S.-China summit at weekend is rapidly losing steam. While the threat of new U.S. tariffs has been postponed for now, existing tariffs that have disrupted global supply chains are unlikely to be lifted any time soon.

· Japanese stocks retreated on Wednesday, pressured by a stronger yen and profit taking among exporter stocks and other cyclical names ahead of an upcoming U.S. holiday and employment data.

Japan's benchmark Nikkei share average ended 0.5% lower at 21,638.16 points, just below its two-month high touched on Tuesday.

"Equities have lost their shine as post-G20 euphoria faded quickly," said Yasuo Sakuma, chief investment officer at Libra Investments.

"Traders moved to lock in profits and to the sidelines before the (U.S.) Independence Day and key data releases."

U.S. financial markets will have a half day of trading on Wednesday and a full day off on Thursday for the Independence Day holiday. On Friday, the U.S. Labor Department is due to release non-farm payrolls data for June.

· Chinese shares fell on Wednesday amid waning investor optimism over progress in trade negotiations between the United States and China, and as new data from China’s services sector added to signs of a domestic slowdown.

At the close, the Shanghai Composite index was down 0.94% at 3,015.26.

Growth in China’s services sector slowed to a four-month low in June as new orders from overseas customers fell, a private survey showed on Wednesday, adding to signs of strain on the economy as the U.S.-Sino trade war drags on.

Reference: CNBC, Reuters