European markets trade higher as traders assess simmering geopolitical tensions

European markets traded higher Wednesday as investors keep an eye on a spike in tensions in the Ukraine-Russia war.

The pan-European Stoxx 600 was 0.5% higher at midday, with the majority of sectors in positive territory. The FTSE 100 was flat after data released earlier showed U.K. inflation picked up sharply to a higher-than-expected 2.3% in October.

The best performer on the Stoxx 600 index was Sage Group, up around 19%, after the British software company reported a better-than-expected 21% rise in full-year operating profit. The worst performer on the index was national lottery operator La Française des Jeux (FDJ), down around 5% after Credit Agricole Assurances announced a sale of FDJ shares.

Global markets fell on Tuesday as investors reacted to Russia lowering the threshold for a nuclear strike, and after Ukraine used U.S.-made long-range ballistic missiles to attack Russian territory for the first time, stoking tensions between Russia and the West.

In the latest development, the U.S. closed its embassy in Kyiv on Wednesday, warning that it has “received specific information of a potential significant air attack.”