European shares cut losses in thin afternoon trade on Wednesday, mirroring a recovery in other risk asset classes, with Inditex still the strongest gainer across the region after posting forecast-beating quarterly results.

Traders said investors, wary of any positive surprises overnight, were closing some of their short positions on equities into the market close.

The pan-European FTSEurofirst 300 index was down 0.3 percent to 987.40 points. - Reuters