BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European shares drifted lower on Wednesday, with renewed Middle East tensions and France's deepening fiscal crisis keeping investors on edge.
Brent crude futures traded above $101 a barrel following more attacks on vessels in the Persian Gulf region.
German, French and Italian bond yields jumped as investors refocused on fiscal worries.
In economic releases, German industrial output expanded 2.0 percent on a monthly basis in August, in contrast to the 1.2 percent decrease in July, data published by Destatis revealed.
Production was expected to grow 0.5 percent. On a yearly basis, industrial production grew 2.3 percent, reversing July's 1.8 percent fall.
Elsewhere, U.K. house prices remained unchanged in September after falling for two straight months amid higher interest rate expectations, monthly data published by Lloyds Banking Group showed.
House prices were flat in September on a monthly basis, following a 0.3 percent fall in August and a 0.1 percent drop in July.
The pan-European STOXX 600 slipped 0.2 percent to 635.44 after rising half a percent on Tuesday.
The German DAX dropped 0.4 percent, France's CAC 40 eased 0.3 percent and the U.K.'s FTSE 100 was down 0.1 percent.
British oil major Shell rose about 1 percent after raising its third-quarter integrated gas production outlook.
Pennon Group shares plummeted 17 percent. The water utility company announced a £550 million rights issue and a 30 percent cut in its dividend.
Bridgepoint soared 7 percent. The alternative asset manager raised its 2026 profit guidance, lifted its medium-term carried-interest targets and overhauled its dividend policy.
British American Tobacco added about 1 percent. The tobacco giant has entered into a new agreement with Merrill Lynch International to conduct its share repurchase program from Oct. 13.
Mersen fell about 2 percent. The French provider of electrical power and advanced materials has lifted its annual outlook and also reaffirmed its medium-term goals for fiscal 2029.
Valerio Therapeutics, a clinical-stage biotechnology company, slumped 4.2 percent after reporting a wider net loss for the first half of 2026.
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