European shares edged higher on Thursday as investors awaited the European Central Bank's (ECB) policy decision and assessed a fresh batch of corporate earnings, with gains in energy stocks offsetting weakness in technology shares, Reuters reported.

The pan-European STOXX 600 index rose 0.11% to 644.80 points by 0806 GMT, according to Reuters.

The ECB is widely expected to leave interest rates unchanged at 2.5%. Investors will focus on comments from President Christine Lagarde for clues about the central bank's outlook, particularly amid concerns over turmoil in France's bond market and questions surrounding Lagarde's future.

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Corporate earnings have emerged as a key driver of market sentiment, with results from major European companies influencing sectoral performance.

Shell shares climbed 2.6% after the oil major reported third-quarter net profit of $10.81 billion, its highest level since 2022 and above market expectations. The company also increased its share buyback programme, according to Reuters.

The gains helped lift the energy sector by 1%, making it one of the strongest performers in early trading. London's FTSE 100 rose 0.3%.

Airbus shares advanced 3.2% after the aircraft manufacturer maintained its full-year forecasts and production plans despite reporting mixed third-quarter earnings. The company's outlook provided support to the stock ahead of the ECB decision.

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Technology stocks, however, remained under pressure, with the sector falling 0.7%. The decline reflected broader weakness in global technology shares as investors assessed earnings from Alphabet.

Alphabet shares slumped 10.8% in US premarket trading after the Google parent reported revenue below expectations and faced growing scrutiny over the cash required to finance its artificial intelligence infrastructure expansion, Reuters reported.

The contrasting performances of energy, aerospace and technology stocks highlighted the importance of corporate earnings in shaping European market sentiment, even as investors awaited the ECB's latest policy signals.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)