European Shares Muted Ahead of Inflation Data, Energy Sector Weighed Down

European shares were muted on Thursday as investors awaited euro zone inflation data, which could influence the European Central Bank's monetary policy path. The pan-European STOXX 600 closed little changed at 659.24 points after retreating from record highs in the previous session.

The energy and materials sector profit was boosted by elevated commodity prices driven by the Middle East conflict. Companies in the region are on track for one of the strongest earnings seasons in years, according to Joost Van Leenders, senior investment strategist at Van Lanschot Kempen Investment Management.

However, investor sentiment remained subdued due to uncertainty surrounding the Middle East conflict. Brent crude futures eased 0.7% as prospects of weaker global demand and an increase in U.S. crude inventories pressured prices. The energy sector declined 0.8%, while basic resources shares led sectoral losses with a 3% fall, their steepest drop in more than a month.

On the bright side, Maersk rose 9.4% after smashing profit forecasts and raising its full-year earnings guidance for a second time this year as the Middle East conflict and strong demand pushed freight rates higher. Adyen also jumped 16.4% after lifting its annual revenue growth forecast.