Europe midday: Shares slip as low Rhine River levels hit German supplies

European shares edged into the red by midday on Thursday as fears of more shortages in the Continent's biggest economy hit shortages as low water levels on Germany's mighty Rhine river threatened traffic of vital goods such as oil, grain and coal.

The pan-European Stoxx 600 index was down 0.04%. Stocks finished higher on Wednesday with investors betting the inflation reading will lead to the Federal Reserve to raise rates less aggressively.

A searing summer has seen water levels on the key waterway drop so drastically that barges are carrying smaller loads than usual, further choking supply chains and hampering Germany's efforts to cut reliance on Russian energy imports.

In equity news, insurer Aegon jumped 10%, as it raised its forecasts for full-year operating capital generation and 2021-2023 free cash flow.

Ladbrokes owner Entain gained as the gambling firm announced a new drive to expand into Central & Eastern Europe (CEE) on Thursday and the acquisition of a Croatian sportsbook operator, as it posted a rise in first-half net gaming revenue.

Bottling group Coca-Cola HBC rose as it said revenues had grown in the six months ended 1 July but contracting margins had led to a drop in interim profits.

Zurich Insurance Group also rose as it reported a better-than-expected rise in operating profit in the first half.

Reporting by Frank Prenesti at Sharecast.com