Europe midday: Shares slip further as Polymetal slumps on dividend news

European shares slipped further into the red as inflation data from the US and UK dampened sentiment.

The pan-European Stoxx 600 was down 0.34% with regional bourses following suit except for Britain's energy-heavy FTSE 100, which was flat.

Oil prices extended gains with benchmark Brent crude above $105 a barrel and West Texas Intermediate over the $100 a mark.

"The market is attempting to price in the risk of Western sanctions on Russian oil as well as improving economic prospects for China as lockdown restrictions eased in Shanghai. It is also becoming apparent that the planned release of 240 million barrels from IEA member nations won’t go a long way to tackle the imbalance between demand and supply, also underpinning price," said Victoria Scholar at Interactive Investor.

US consumer prices rose to their highest level in 40 years in March, while official data released in Britain showed inflation hitting a 30-year high last month.

Investors were also eyeing the war in Ukraine as Russia massed forces in the country’s east as it continued to destroy cities in the region.

In equity news, shares in gold miner Polymetal International slumped 16.3% after the Russian company shelved payment of its final dividend because of uncertainty over its financial position caused by sanctions linked to the war in Ukraine.

UK retailer Tesco fell 4.6% after it warned profit was likely to fall in the current year.

French luxury goods maker LVMH rose on demand for its Louis Vuitton and Dior brands boosted first-quarter sales.

Telecom Italia rose after reports French telecoms group Iliad was interested in making an offer TIM's domestic consumer service business.