06:50 AM EST, 03/06/2025 (MT Newswires) -- European bourses tracked lower midday Thursday as traders weighed higher interest rates, and the evolving Ukraine-Russia war.

Yields on benchmark 10-year German bonds were higher, near 2.85%, up from under 2.40% last week, following recent disclosures of plans to boost Germany's spending on defense and infrastructure, to be financed by debt.

Oil issues inched higher in continental trading, while tech and retail stocks held firm. Property and food issues lagged.

Investors also eyed Wall Street futures signaling red, but higher closes overnight on Asian exchanges, on prospects for additional macroeconomic stimulus from Beijing.

In economic news, the European Central Bank is expected to cut its key policy rate to 2.50% from 2.75%, at its policy session today.

The pan-continental Stoxx Europe 600 Index was off 0.7% mid-session.

The Stoxx Europe 600 Technology Index was flat, and the Stoxx 600 Banks Index lost 0.2%.

The Stoxx Europe 600 Oil and Gas Index was up 0.3%, but the Stoxx 600 Europe Food and Beverage Index declined 1.1%.

The REITE, a European REIT index, fell 2.1%, and the Stoxx Europe 600 Retail Index was steady

On the national market indexes, Germany's DAX was up 0.2%, but the FTSE 100 in London was down 1%. The CAC 40 in Paris was off 0.7%, and Spain's IBEX 35 lost 0.8%.

Yields on benchmark 10-year German bonds were higher, near 2.85%, up from under 2.40% last week.

Front-month North Sea Brent crude-oil futures were steady near $69.33 per barrel.

The Euro Stoxx 50 volatility index was up 1.5% to 22.54, indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.