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European stocks close near one-month lows as yields, oil pressured

Euro STOXX 50 fell 0.1% to 6,363 and STOXX Europe 600 fell 0.2% to 646. Borrowing-cost pressures and renewed Middle East fighting lifted oil and gas, weighing utilities and consumer stocks.

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European stock indices closed with little movement on Wednesday, remaining at a one-month low amid persistent pressure from soaring borrowing costs.

The Euro STOXX 50 fell 0.1% to 6,363 and the STOXX Europe 600 dropped 0.2% to 646.

Renewed fighting in the Middle East continued to put upward pressure on oil prices, stoking inflation concerns and raising expectations of tighter monetary policy.

The bond sell-off also intensified, with linger maturity European government bond yields climbing to multi-decade highs in many economies.

Utilities booked sharp losses as European natural gas prices rose further, with Enel and Iberdrola dropping 2.6% and 1.2%, respectively.

Consumer discretionary was also under pressure with Inditex and LVMH down 2% and 2.5%.

Meanwhile, Volkswagen sank almost 4% as it will leave the STOXX 50 index, to be replaced by Nokia, which has recently surged amid the global rally for AI infrastructure this year.