European stocks traded cautiously on Wednesday, with both the STOXX 50 and STOXX 600 fluctuating around the flatline after posting modest gains in the previous session.
Investors remained focused on the corporate earnings season while continuing to monitor developments in the Middle East, where persistent uncertainty has kept upward pressure on oil prices.
ASML surged more than 6% after raising its 2026 financial guidance and announcing plans to expand production capacity, following better-than-expected second-quarter results driven by strong demand for AI-related technologies.
Richemont also gained more than 5% after reporting stronger-than-expected second-quarter sales.
Other notable gainers included LVMH (+2.1%) and Hermes (+2.5%).
In contrast, Nestle (-1.3%), Siemens (-0.6%), and SAP (-1.1%) traded lower.