European equities were subdued on Wednesday, with the STOXX 50 hovering around the flatline and the STOXX 600 slipping 0.1%, remaining near one-month lows. Renewed conflict in the Middle East continued to drive oil prices higher, fuelling inflation worries and reinforcing expectations of tighter monetary policy. At the same time, the bond sell-off deepened, pushing European government bond yields further up.
LVMH dropped 1.2% to a 14‑month low of €439.55, Siemens lost 0.9% and Siemens Energy also retreated 0.9%. By contrast, L'Oréal advanced 1.1%. Telecoms were among the day’s strongest performers: Nokia gained more than 1% after index provider STOXX said the company would be reinstated in the STOXX 50. Banks also traded higher, with Deutsche Bank up 2.4% and Commerzbank adding 1.5%.
