He pan-European Stoxx 600 slipped 0.2% below the flatline by mid-afternoon, with oil and gas dropping 1.5% while travel and leisure stocks gained 0.5%.
The flat trade for European markets comes amid investor concerns over the inflation outlook in the region; data released on Wednesday showed euro zone inflation at 4.1% year-on-year in October, more than double the European Central Bank’s target.
In its biannual stability report published Wednesday, the ECB warned of stretched valuations in property and financial markets, as the region continues to recover from the Covid pandemic on the back of ultra-low interest rates and massive stimulus measures.