Key facts
- European shares traded flat, with basic resources gains offsetting tech declines.
- US stock futures were stable after a tech-driven selloff.
- Middle East tensions pushed Brent crude futures to a three-week high.
- Global government bond yields reached multi-decade highs, impacting borrowing costs.
- Investors are awaiting minutes from the Federal Reserve's July meeting for policy insights.
- UK annual inflation rose to 2.9% in July.
European shares traded flat on Wednesday, with gains in the basic resources sector providing some support amid broader market uncertainty. Investors were also awaiting the release of minutes from the U.S. Federal Reserve's July meeting for clues on the future path of interest rates.
The pan-European STOXX 600 index was flat at 652.07 as of 0715 GMT. The basic resources sector climbed 0.6%, influenced by higher gold prices.
Conversely, technology stocks experienced the most significant decline, falling 0.4%. This downturn was attributed to a bond sell-off that pushed yields higher. Soitec was the top loser, down 4.4%, while Nordic Semiconductor and Scout24 saw declines of 2.1% and 2.3%, respectively.
In geopolitical news, U.S. President Donald Trump stated on Tuesday that no talks were underway with Iran and asserted that the Strait of Hormuz remained open, contradicting Iran's claims of a shipping shutdown.
Meanwhile, in the UK, consumer price inflation increased to an annual rate of 2.9% in July, up from 2.6% in June.