European stock markets traded lower on Wednesday as technology shares came under pressure ahead of quarterly earnings from major U.S. technology companies, while investors also monitored rising geopolitical tensions in the Middle East, according to Reuters.
The pan-European STOXX 600 index was down 0.3% at 641.12 points in early trade, with weakness in the technology sector offsetting gains in energy stocks.
Technology stocks led the declines, falling 1.7% as investors turned cautious before earnings reports from Alphabet and Tesla. Market participants are looking to the results for fresh signals on whether the rally in artificial intelligence-related stocks can continue. Reuters reported that semiconductor-related companies Soitec and Aixtron declined 2.3% and 2.6%, respectively.
Energy stocks bucked the broader market trend, rising 0.4% after oil prices edged higher. Brent crude gained following reports that three tankers carrying Saudi crude to Asia reversed course from the Red Sea after threats from Yemen's Iran-backed Houthi group. The development renewed concerns over potential disruptions to global oil supplies.
Among individual stocks, Spanish banking giant Santander slipped 1.3% despite posting a 17% increase in underlying net profit for the second quarter.
Meanwhile, Finland-based load-handling equipment manufacturer Hiab emerged as the top performer on the STOXX 600, surging more than 10% after reporting stronger-than-expected second-quarter order growth.
Investors remain focused on upcoming corporate earnings and geopolitical developments, with both expected to shape market sentiment in the near term.
