Eurozone Shares Dip as Inflation Fears Offset PMI Gains
European shares slipped into negative territory by midday on Wednesday, weighed down by inflation fears and expectations of interest rate hikes.
The pan-regional Stoxx 600 index declined 0.24% to 641 at 1036 GMT, with all major bourses trading lower.
Brent crude prices fell 0.4% to $98.85 a barrel, still significantly higher than the pre-conflict level of $72 per barrel.
Fears over inflationary pressures and subsequent interest rate hikes overshadowed positive flash business survey readings in the eurozone.
The HCOB eurozone composite purchasing managers' index rose to 53.1 from 52.0 in August, its highest reading since April 2023, indicating expansion across both manufacturing and services sectors.
Growth was broad-based, with Germany recording its strongest expansion in almost a year and France returning to growth for the first time in 10 months.