European stock markets were largely unchanged on Tuesday as continued weakness in technology shares offset strong corporate earnings from consumer goods, luxury and automotive companies, Reuters reported. Lower oil prices also helped cushion broader market losses, keeping investor sentiment relatively stable ahead of a packed week of earnings and central bank announcements.
The pan-European STOXX 600 index was little changed at 645.32 by 0703 GMT, reflecting cautious trading as investors awaited key developments, including the U.S. Federal Reserve's policy decision and earnings from major U.S. technology companies.
Tech shares remain under pressure
Technology stocks extended their decline, falling 0.8% after dropping nearly 2% in the previous session. Reuters reported that the sector tracked a broader global selloff in semiconductor shares following reports that China has begun producing domestically developed immersion deep-ultraviolet (DUV) lithography machines.
The reported breakthrough raised concerns over increasing competition in the semiconductor equipment market, an area long dominated by Dutch chip equipment maker ASML. Shares of ASML fell 2% in early European trading as investors reacted to the development.
The weakness followed declines in U.S. semiconductor stocks overnight and losses across Asian technology markets earlier in the day.
Consumer and luxury stocks provide support
Despite the pressure on technology stocks, gains in consumer and luxury companies helped limit losses across European markets.
The personal and household goods sector rose 1.8%, led by Unilever, whose shares jumped 5.3% after the company reported stronger-than-expected second-quarter sales growth. The performance was driven by higher product volumes and improved pricing, according to Reuters.
Luxury group LVMH also advanced 2.5% after posting a 3% increase in second-quarter sales, supported by resilient demand from U.S. consumers.
Mercedes-Benz gains after earnings
Mercedes-Benz shares climbed 3.3% after the German automaker reported a 22% increase in second-quarter operating profit, beating market expectations.
However, the company also warned that its core passenger car business continues to face headwinds, underscoring the challenges confronting the broader automotive industry despite stronger earnings.
Investors await key global events
Investor focus has now shifted to a series of major market catalysts later this week.
Several large U.S. technology companies are set to report quarterly earnings, with markets closely watching whether the artificial intelligence-driven rally can continue.
Attention is also centered on the U.S. Federal Reserve's monetary policy announcement on Wednesday, which is expected to provide fresh clues on the outlook for interest rates and global financial markets, Reuters reported.
