European shares edged lower on Thursday, weighed down by technology stocks following Alphabet's earnings results, while investors awaited the European Central Bank's monetary policy decision amid the ongoing conflict in the Middle East.
The European Stoxx 600 index fell 0.6% to 642.58 points
Technology stocks led the losses, falling 2.7%, after STMicroelectronics shares plunged 15% following a third-quarter revenue forecast that came in slightly below market estimates at the middle of the expected range.
Shares of BE Semiconductor also fell 4.6% following the announcement of its quarterly results.
The pressure also came after Alphabet announced on Wednesday that it was increasing its capital spending plans for 2026 by $15 billion, reinforcing investor doubts about the ability of AI investments to generate rewarding returns.
In contrast, the European energy sector index rose 0.6% as Brent crude futures climbed to over $96 a barrel, after the United States launched a new round of strikes on Iran and Houthi rebels in Yemen targeted oil tankers in the Red Sea, widening the conflict and increasing uncertainty in global markets.
Announcements of European companies' earnings results continue, while investors assess the results of Nestle and Total Energies.
Market attention is focused today, Thursday, on the European Central Bank meeting, amid widespread expectations that interest rates will remain unchanged.
