European Stocks Edge Down

European stocks were subdued on Thursday, with the STOXX 50 falling 0.2% and the STOXX 600 slipping 0.3%, as investors digested a fresh round of corporate earnings and company updates. Meanwhile, oil prices eased despite the ongoing hostilities between the US and Iran. Utilities and consumer staples were among the worst performers. TotalEnergies fell 1.6% after its earnings preview indicated that Q2 profits are expected to benefit from higher oil prices, although LNG earnings are projected to decline sharply. ABB lost 2% after announcing a $5.5 billion acquisition of British automation company Rotork. Experian tumbled more than 5% after its results disappointed investors, while the company maintained its full-year guidance. On the upside, ASML Holding advanced 2.6%, supported by strong quarterly results from Taiwan Semiconductor Manufacturing. Publicis gained 1.3% after raising its full-year guidance.

European equity markets were poised to open higher on Thursday as softer US inflation data eased concerns about an imminent Federal Reserve interest rate hike. However, investor sentiment remained cautious amid a global selloff in semiconductor stocks, fueled by persistent concerns over the sustainability of the artificial intelligence trade. In Europe, data showed the UK economy expanded 0.1% month-on-month in May, rebounding from a 0.1% contraction in April and matching market expectations. On the corporate front, investors awaited earnings reports from ABB Group and Publicis Groupe. In premarket trading, Euro Stoxx 50 futures rose 0.4%, while Stoxx 600 futures gained 0.1%.

European stock indices closed mixed on Wednesday amid an uncertain macroeconomic backdrop as markets parsed key earnings reports. The Euro STOXX 50 inched lower by 0.2% to 6,267 and the STOXX Europe 600 rose 0.2% to 643. ASML raised its guidance for the near future and announced plans to expand production capacity following better-than-expected second-quarter results, driven by strong demand for chip producers. Still, another session of sharp losses for semiconductor manufacturers drove the stock to close flat, despite a 7% increase in morning deals. Meanwhile, luxury brands rose sharply after Richemont posted strong results, lifting their shares by 6%. LVMH and Hermes gained around 2.5% each. On the other hand, banks fell as sovereign yields increased, denting the outlook for credit. Energy prices remained elevated as strikes between the US and Iran escalated, denting hopes of natural gas and fuel exports from the Middle East.