By Sanchayaita Roy and Sukriti Gupta
(Reuters) -European shares were mixed on Wednesday, with ASML dragging the market down after a weak business update, while investors focused on trade negotiations and corporate earnings.
The pan-European STOXX 600 index fell 0.2% to 544.14 points, as of 0836 GMT.
Meanwhile, Germany’s DAX was up 0.1%, Spain’s IBEX climbed 0.7%, the UK’s FTSE 100 gained 0.2%, while France’s CAC 40 was flat.
ASML fell 7.7%, heading for its biggest single-day fall in about nine months, after the world’s biggest supplier of computer chip-making equipment warned it may not achieve growth in 2026, despite second-quarter bookings beating expectations.
The comments weighed on the technology sector, which fell 1.3%, with European chipmakers BE Semiconductor down 2.8% and ASMI dropping 3.8%.
The latest earnings forecasts released on Tuesday showed a deteriorating outlook for European corporate health, as U.S. President Donald Trump’s most recent tariff statements added to business uncertainty.
“Looking at the earnings season, it’s expected that Europe is going to be hit the most,” said Anthi Tsouvali, multi-asset strategist at UBS Global Wealth Management, citing tariff-driven uncertainty, weak business sentiment and margin pressure from stockpiling.
In the U.S., focus now turns to producer prices data due later in the day after consumer inflation figures on Tuesday signalled tariffs were starting to have an impact on inflation.
In trade, Trump on Tuesday said the U.S. would impose a 19% tariff on goods from Indonesia in a latest deal, while offering fresh details on planned duties on pharmaceuticals.
Meanwhile, investors awaited for clarity on U.S.-EU trade talks as the bloc readied retaliatory measures if negotiations with Washington failed.
European auto stocks fell 1.3%, led by Renault, which dropped 15.9% to an over one-year low, after the French carmaker on Tuesday lowered its full-year operating margins forecast and naming finance chief Duncan Minto as an interim CEO.
Stellantis fell 3.3% after the carmaker said it would discontinue its hydrogen fuel cell technology programme and no longer launch a range of hydrogen-powered vehicles this year.
Conversely, shares in asset manager Partners Group rose 5.3% after the firm reported better-than-expected half-yearly assets under management and confirmed its full-year outlook.
On the data front, Britain’s annual rate of consumer price inflation unexpectedly rose to its highest in over a year at 3.6% in June, up from 3.4% in May.
(Reporting by Sanchayaita Roy and Sukriti Gupta; Editing by Vijay Kishore and Nivedita Bhattacharjee)
