European stock indices were little changed on Wednesday, hovering near a one‑month low as markets remained under pressure from surging borrowing costs. The Euro STOXX 50 slipped 0.1% to 6,363, while the STOXX Europe 600 edged down 0.2% to 646.
Renewed conflict in the Middle East continued to push oil prices higher, fuelling inflation worries and reinforcing expectations of tighter monetary policy. The bond sell-off also intensified, with longer‑maturity European government bond yields rising to multi‑decade highs in several economies.
Utilities recorded sharp losses as European natural gas prices climbed further, with Enel and Iberdrola falling 2.6% and 1.2%, respectively. Consumer discretionary shares came under pressure as well, with Inditex down 2% and LVMH off 2.5%.
Volkswagen dropped almost 4% after it was removed from the STOXX 50 index, to be replaced by Nokia, whose shares have rallied strongly this year amid the global boom in AI infrastructure.
