July 16 (Reuters) – European shares were subdued on Thursday as investors assessed fresh corporate earnings reports and M&A activity amid escalating tensions in the Middle East that threatened to fuel energy inflation in the region.
The pan-European STOXX 600 index slipped 0.1% to 641.95 by 0712 GMT, with most sectors trading marginally lower.
Tech stocks were mixed. Chip equipment maker ASML’s shares were up 2% in early trading, while most other semiconductor stocks, STMicroelectronics and BE Semiconductor edged down.
There was overall global relief after Taiwan’s TSMC, the world’s largest producer of advanced AI chips, reported a record 77% jump in second-quarter profit, suggesting strong demand for AI infrastructure was strong.
Also offering markets some solace over imminent AI disruption was Publicis. Shares of the French advertising group added 1.4% after reporting higher first-half net revenue, driven by strong demand for AI-driven marketing services.
Elsewhere, ABB slipped 1% after the industrial company announced a $5.5 billion takeover of automation company Rotork, and it said its second-quarter operating profits beat expectations. The UK company’s shares soared 66%.
U.S.-based Uber said it launched a public takeover offer for Delivery Hero, valuing the German food delivery company at about $14.8 billion. Shares of Delivery Hero slipped 1%, after rallying earlier this year following reports about the bid.
Global market sentiment was guarded after fresh U.S. and Iranian military strikes raised fears of a wider regional conflict, and Brent crude prices traded near $85 a barrel.
(Reporting by Tharuniyaa Lakshmi and Johann M Cherian in Bengaluru; Editing by Rashmi Aich)
