The STOXX 600 slipped 0.1% as investors weighed strong AI-linked results from TSMC and Publicis against takeover activity and concerns that rising regional conflict could keep oil prices elevated.
European shares were little changed on Thursday, with the pan-European STOXX 600 down 0.1% at 641.95 by 0712 GMT as investors balanced fresh corporate earnings and merger activity against renewed concern that escalating tensions in the Middle East could add to energy inflation. Tech stocks were mixed. ASML rose 2% in early trading, while STMicroelectronics and BE Semiconductor edged lower, even as global sentiment toward the sector was supported by TSMC's record 77% jump in second-quarter profit, pointing to continued strong demand for AI infrastructure. Publicis gained 1.4% after the French advertising group reported higher first-half net revenue driven by demand for AI-driven marketing services. In deal news, ABB fell 1% after announcing a $5.5 billion takeover of automation company Rotork, whose shares jumped 66%. Delivery Hero slipped 1% after Uber launched a public takeover offer that valued the German food delivery company at about $14.8 billion. Broader market sentiment remained guarded after fresh U.S. and Iranian military strikes raised fears of a wider regional conflict. Brent crude traded near $85 a barrel.