European stocks traded cautiously on Wednesday, with the STOXX 50 near flat and the STOXX 600 down 0.1% near levels last seen about a month ago. Renewed fighting in the Middle East pushed oil prices higher, increasing inflation concerns and expectations for tighter monetary policy. European government bond yields rose further as a sell-off intensified. LVMH dropped 1.2% to a 14-month low of €439.55, while Siemens and Siemens Energy each fell 0.9%. L'Oréal gained 1.1%. Telecom shares were among the strongest performers, led by Nokia, which rose more than 1% after STOXX announced it would rejoin the STOXX 50. Banks also advanced, with Deutsche Bank up 2.4% and Commerzbank 1.5% higher.