European equities traded largely unchanged on Tuesday, as sharp declines in semiconductor and technology shares counterbalanced robust quarterly earnings from major consumer goods, luxury, and automotive brands. Lower oil prices helped cushion broader market losses while investors awaited upcoming central bank decisions.
Key Drivers Across Sectors
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Semiconductor & Tech Slump: Technology shares fell 0.8% following a nearly 2% drop in the prior session. Concerns over intensifying global competition hit chip-equipment giant ASML (down 2%) after reports emerged that China began producing domestic immersion DUV lithography equipment.
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Consumer & Luxury Resilience: Strong earnings lifted non-tech sectors. Unilever jumped over 5% after beating Q2 sales expectations on strong pricing and volume growth. LVMH advanced 2.5% on steady demand from US consumers.
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Automotive Lift: Mercedes-Benz climbed 3.3% following a 22% increase in Q2 operating profit, though management warned of ongoing headwind pressures in the passenger car market.
What Investors Are Watching Next
Global Catalysts Ahead: Market focus is pivoting toward upcoming Q2 earnings from major US Big Tech firms to gauge the sustainability of the AI rally, alongside the Federal Reserve’s monetary policy announcement for interest rate guidance
