European Shares Muted Amid Middle East Tensions, Energy Stocks Surge
European shares remained subdued on Wednesday, hovering around a two-week low as oil prices stayed elevated due to Middle East tensions. This led to a boost in energy stocks, but raised concerns about inflation and growth.
The pan-European STOXX 600 was flat at 652.36 points by 0933 GMT. Energy was the top-performing sector, rising 0.6% in line with higher oil prices, which traded around $91 a barrel. Defence stocks also climbed 0.4% after RBC and Barclays initiated coverage of several European defence firms.
However, media stocks took a hit, falling 0.7%. WPP, Pearson, and Publicis Groupe dropped between 1.5% and 0.9%. Euro zone consumer price inflation rose to 0.2% in July, in line with expectations, while UK consumer price inflation reached 2.9% from a 15-month low of 2.6%.
The Fed's minutes, due later in the day, could provide investors with fresh clues on the outlook for interest rates. FLSmidth & Co rose around 7.9% to top the STOXX 600 after reporting second-quarter revenue above analysts' estimates.