July 23 (Reuters) – European shares edged lower on Thursday, weighed down by technology stocks following quarterly results from U.S. giant Alphabet, while markets assessed the Middle East conflict ahead of the European Central Bank’s policy meeting.
The pan-European STOXX 600 index slipped 0.5% to 643.47 points by 0705 GMT.
Tech stocks slipped 2.7% on Thursday, with STMicroelectronics leading declines with a 15% drop after the chipmaker forecast a third-quarter revenue with a midpoint slightly below market expectations.
BE Semiconductor Industries lost 4.6% after its second-quarter results.
Alphabet on Wednesday increased its capital spending plans for 2026 by $15 billion, adding to doubts whether the AI investments materialise into returns.
The STOXX 600 energy index rose 0.6% as Brent crude futures rose to over $96 per barrel after the U.S. launched a new round of strikes on Iran and Yemen’s Houthis targeted oil tankers in the Red Sea, widening the scope of a conflict that has upended the global rates outlook. [O/R]
Earnings in Europe were in full swing with markets assessing reports from Nestle and TotalEnergies.
The ECB’s policy decision is in focus on Thursday, with the central bank widely expected to keep rates unchanged.
(Reporting by Tharuniyaa Lakshmi and Purvi Agarwal in Bengaluru; Editing by Harikrishnan Nair)
Comments