European stocks experienced a slight decline on Wednesday, influenced by increased bond yields and a surge in oil prices amidst escalating tensions in the Middle East. These factors have raised concerns that interest rates may remain elevated for an extended period.
In economic developments, consumer confidence in Germany is projected to improve further in June. This is attributed to rising economic and income expectations, buoyed by slowing inflation and increasing wages, according to a recent survey.
The consumer confidence index climbed to -20.9 in June, up from a revised -24.0 in the previous month, as indicated by a survey conducted jointly by GfK and the Nuremberg Institute for Market Decisions. This marks the fourth consecutive improvement in the overall consumer climate.
In France, consumer confidence remained stable in May but continued to lag behind its long-term average, based on monthly survey data from the statistical office INSEE.
The consumer sentiment index held steady at 90.0 in May, unchanged from April. However, economists had anticipated an increase to 91.
Investors are also awaiting the release of German CPI data later in the day.
The pan-European STOXX 600 index fell by 0.3 percent to 517.34, following a 0.6 percent drop on Tuesday. The German DAX decreased by 0.4 percent, France's CAC 40 diminished by 0.6 percent, and the UK's FTSE 100 declined by 0.2 percent.
In London, BP Plc saw a 1.6 percent increase, and Shell rose by 1.7 percent as oil prices extended overnight gains, amid expectations that major producers will continue output cuts during a meeting scheduled for Sunday.
Shares of BHP Group increased by 1.2 percent following reports that the mining giant has encouraged rival Anglo American to extend the impending deadline for a final offer on a proposed £39 billion merger.
Shares of International Distributions Services, the parent company of Royal Mail, surged by 3.4 percent after accepting a takeover proposal from Czech billionaire Daniel Kretinsky's conglomerate, EP Group.
