European equities edged higher on Wednesday, supported by gains in mining and energy stocks as investors monitored developments in the Middle East and looked ahead to earnings reports from major US technology companies, according to a Reuters report.
The pan-European STOXX 600 index rose 0.35% to 648.54 points by 0704 GMT, with commodity-linked sectors emerging as the biggest gainers.
Mining stocks advanced 1.5%, helped by a strong performance from Glencore, which climbed 4% after reporting a 15% increase in first-half copper production due to improved grades at key operations.
Energy shares gained 1.6% as crude oil prices surged, with Brent futures rising 3% to above $86 a barrel. The rise came after joint strikes by the US and Saudi Arabia in Iraq raised concerns over further escalation in the ongoing US-Iran conflict. As per the report, investors were closely tracking geopolitical developments alongside broader market cues.
With the European earnings season underway, market participants remained focused on a mix of corporate results and macroeconomic indicators. Personal and household goods stocks rose 1.2%, driven by a 10.7% jump in Kering shares after sales at its flagship Gucci brand declined less than analysts had expected in the second quarter.
However, technology stocks slipped 0.4% after South Korean chipmaker SK Hynix posted strong quarterly results but fell short of elevated market expectations. The report noted that the results added to investor concerns over the pace of artificial intelligence-related spending by major technology companies.
Investors were also awaiting signals from US Federal Reserve Chair Kevin Warsh’s policy statement for clues on the central bank’s future monetary policy direction and the outlook for interest rates.
