European Stocks Set for Lower Open

European stocks inched higher on Tuesday with support from corporate earnings and another pullback in energy prices. The Euro STOXX 50 added 0.2% to 6,294 and the STOXX Europe 600 gained 0.4% to 647. LVMH gained 1% reporting broadly in-line sales growth. Unilever surged 8.5% after raising its full-year sales guidance, while Mercedes-Benz climbed 2.9% after posting a profit beat despite a sharp drop in deliveries in China. Also, Safran rebounded from early losses and advanced 3% after results. Orange also gained 3.1% after upgrading its annual profit outlook. On the downside, Barclays fell 5.6% after posting its balance sheet. Meanwhile, the technology sector remained under pressure globally, with renewed concerns over AI-related spending weighing particularly on semiconductor stocks. ASML extended its recent losses, falling 3%, after reports that a Chinese state-backed company has started mass-producing certain chipmaking equipment.

The STOXX 50 rose 0.3% and the STOXX 600 gained 0.1% on Tuesday, with investors focusing on a fresh round of corporate earnings and welcoming a further decline in oil prices as the pause in hostilities between the US and Iran appeared to hold. LVMH advanced 2.6% after reporting broadly in-line sales growth. Unilever jumped 5% after raising its full-year sales guidance, while Mercedes-Benz climbed 4.3% after posting a profit beat despite a sharp drop in deliveries in China. Orange also gained 3.1% after upgrading its annual profit outlook. On the downside, Barclays fell 4.9% and Safran slipped 1% as their earnings reports failed to impress investors. Meanwhile, the technology sector remained under pressure globally, with renewed concerns over AI-related spending weighing particularly on semiconductor stocks. ASML extended its recent losses, falling 0.5%, after reports that a Chinese state-backed company has started mass-producing certain chipmaking equipment.

European equity markets were set to open lower on Tuesday as investor sentiment weakened amid a global selloff in semiconductor stocks, fueled by mounting concerns over circular artificial intelligence financing arrangements and intensifying competition from China. The declines came even as oil prices extended their losses after President Donald Trump said the US was engaged in "good talks" with Iran aimed at ending the Middle East conflict. In Europe, investors will monitor French consumer confidence and employment data, along with unemployment and retail sales figures from Spain. On the corporate front, earnings reports are due from Unilever, Safran, Air Liquide, GlaxoSmithKline, and Essilor, among others. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were both down about 0.2%.