European stocks closed mixed on Wednesday as investor caution returned following U.K. Prime Minister Boris Johnson's vow to block an extension of EU trade talks beyond 2020, reviving fears of a “cliff-edge” Brexit.

The pan-European Stoxx 600 closed flat at 414.38  with sectors and major bourses pointing in different directions.

Johnson on Tuesday used the power of his newly won parliamentary majority to set a hard deadline of December 2020 to reach a new trade deal with the EU, with the U.K. set to leave the bloc by January 31, in a bid to strong arm the bloc into hastening an accord.

The German Ifo business climate survey released on Wednesday showed that business morale rose more than expected in December to hit a six-month high, indicating that Europe’s largest economy may have picked up steam in the fourth quarter despite persistent manufacturing sluggishness.

Source : CNBC