Key facts
- European shares declined as Middle East tensions offset strong corporate earnings.
- ASML shares rose 2% after reporting strong results, while TSMC posted a 77% profit jump.
- Richemont shares surged 6.1% on better-than-expected first-quarter results.
- Brent crude prices neared $85 a barrel due to escalating Iran-U.S. tensions.
- German stocks underperformed, impacted by software company declines.
- ABB announced a $5.5 billion takeover of Rotork, whose shares surged 66%.
European stocks declined as investors assessed corporate earnings reports and escalating Middle East tensions, which threatened energy supplies and amplified inflation concerns. The pan-European STOXX 600 index fell 0.4%, with utilities leading broad-based sectoral losses. Chip equipment maker ASML's shares rose 2% after reporting strong results, and Taiwan's TSMC reported a record 77% jump in second-quarter profit. Luxury goods firm Richemont shares surged 6.1% following better-than-expected first-quarter results. Brent crude prices traded near $85 a barrel amid fears of a wider regional conflict. Germany's DAX index underperformed due to declines in software companies like SAP and Nagarro.