European Bourses Turn Modestly Lower Midday, Financial Issues Wane

European bourses turned modestly lower midday Wednesday, digesting recent gains that followed fading concerns that the omicron variant of COVID-19 would upend the global economy. Financial issues were weak.

Traders also weighed a dull Wall Street futures market, but higher closes overnight on Asian exchanges. Hong Kong traded nearly flat as the property- and tech-sector rallies stalled.

European Central Bank Vice President Luis de Guindos said current inflation rates could last longer than previously expected, at a conference of the European Systemic Risk Board.

The pan-continental Stoxx Europe 600 Index was off 0.2% mid-session.

The Stoxx Europe 600 Technology Index declined 0.6%, and the Stoxx 600 Banks Index was off 1.9%. The Stoxx Europe Oil and Gas Index was off 1.2%.

The Stoxx Europe Food and Beverage Index bucked trends and was up 0.3%, but the REITE, a European REIT index, lost 0.8%, and the Stoxx Europe 600 Insurance Index declined 1.2%.

In national market indices, the German DAX was off 0.6%, the FTSE 100 Index in London was flat, and the CAC 40 in Paris was off 0.3%. Spain's IBEX 35 fell 0.8%

Yields on benchmark 10-year German bonds were less negative, at minus 0.40%.

Front-month Brent crude oil futures were 1.0% lower at $74.71 per barrel.

The Euro Stoxx 50 volatility index was up 3.3% at 25.68, still indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests expectations for calmer markets.