The pan-European STOXX 600 index was flat by 0710 GMT, with technology shares falling 0.6%, as yields rose while the telecommunications index gained 0.5%.
Euro zone's services activity data, due at 0800 GMT, is expected to show an expansion in March, a similar pace of growth from last month.
German industrial orders rose more than expected in February, driven by strong growth in the vehicle construction sector.
Among individual stocks, Sodexo jumped 8.9% as the French catering and food services group plans to spin off and list its Benefits & Rewards Services business in 2024.
UBS rose 0.8% as the lender seeks to reassure shareholders that its unexpected takeover of rival Credit Suisse in the biggest bank rescue since the great financial crash can work.
Shares of Barry Callebaut lost 1.9% after the world's biggest chocolate maker reported a lower half-year sales volumes due to limited availability of its global brands and lacklustre customer demand.
(Reporting by Shubham Batra in Bengaluru; Editing by Sherry Jacob-Phillips)
