Source: Sharecast
The pan-regional Stoxx 600 index was down 0.34% to 555.90 at 0810 BST. Germany’s DAX fell 0.85% and Britain’s FTSE 100 declined 0.22%.
Markets closed at a five-month high on Tuesday on the back of hopes that Russia and Ukraine are closing in on a peace deal.
US President Donald Trump and European leaders in Washington claimed Russia leader Vladimir Putin had agreed to meet face-to-face with Zelenskyy to thrash out an agreement, although there was no confirmation from Moscow.
In economic news, UK consumer price inflation rose at an annual rate of 3.8% in July, mainly due to transport and in particular air fares, according to official data.
This was up from 3.6% in June and was above analysts' expectations of 3.7%. The core rate - which strips out energy, food, alcohol and tobacco - rose to 3.8% from 3.7%.
Meanwhile, wholesale prices in Germany unexpectedly fell in July, with the annual rate of deflation picking up to a 13-month high, according to data out on Wednesday from Destatis.
The producer price index (PPI) fell 0.1% last month, pulling back after a 0.1% increase in June, the Federal Statistical Office reported. The consensus forecast was for another 0.1% gain.
Compared with 12 months earlier, the PPI was down 1.5% in July, following a 1.3% decrease in June. This was the steepest rate of decline since June 2024 and below the -1.3% market estimate.
In equity news, defence stocks were once again out of favour on the back of hopes for peace in Ukraine. Renk Group, Rheinmetall and Hensoldt all fell.
Reporting by Frank Prenesti for Sharecast.com