European markets trade higher but sentiment dampened by volatility in China

This is CNBC's live blog covering European markets.

European markets traded slightly higher Wednesday as positive sentiment wavered in the region, spurred on by volatility in China.

The pan-European Stoxx 600 index was trading up 0.2% by 2:20 p.m. in London, with banks and oil and gas sectors remaining in negative territory. Nonetheless, the lackluster session comes after a shaky start to the week for regional markets, with investors responding to a slowdown in China's stimulus rally.

Chinese stocks sold off in another volatile day of trading amid mixed Asia-Pacific markets overnight with the mainland CSI 300 dropping 6%, and Hong Kong's Hang Seng index extending its losses, falling 2.5%. On Tuesday, the HSI recorded its worst day in 16 years, closing 9.41% lower.

U.S. stocks opened little changed following a winning session for the major averages. Wall Street is coming off a strong session for the major averages Tuesday as tech stocks outperformed, and oil prices eased off their highs. 

Events to watch out for in Europe today include the German government's latest economic forecasts and the latest meeting of NATO defense ministers in Belgium.

— CNBC's Sarah Min and Lim Hui Jie contributed to this market report.

Shares of German pharmaceutical firm Bayer were 7% lower at 3:40 p.m. London time, after Washington's top court said it would review a case alledging people were harmed by exposure to chemicals in products made by the company's Monsanto unit.

Bayer said there was "no basis for a different outcome on appeal," and that it believed a prior Washington Court of Appeals' decision — which had ruled in its favor — had identified three errors in the initial case.

Bayer acquired U.S. agrichemical-maker Monsanto in 2018 and has