LONDON — European stocks ended Wednesday's session in negative territory, as regional investors monitored key earnings reports.
The pan-European Stoxx 600 was down 0.7% at the closing bell, with all major bourses in the red and regional sectors mixed.
Dutch semiconductor giant ASML reported orders that smashed expectations, while 2026 sales guidance was also ahead of estimates.
Shares of the company jumped 5.9% in early trade, also pulling its European peers higher, before retreating into negative territory to close down 1.9%. Chip equipment maker ASMI ended 1.2% lower, STMicro gained 1.9%, and Infineon added 3%.
European luxury conglomerate LVMH, which reported better-than-expected earnings after the bell on Tuesday and a second quarter of organic revenue growth, finished the day down 7.9%.
Investors will also be keeping an eye on U.S. earnings on Wednesday with Microsoft, Meta Platforms, and Tesla set to post their quarterly financial results after the closing bell. Apple will post its results on Thursday.
The U.S. Federal Reserve's first rate decision of the year is also in focus on Wednesday. The central bank is widely expected to keep its benchmark interest rate steady at a target range of 3.5% to 3.75%, but traders will be seeking hints on longer-term changes to monetary policy.
Fed funds futures trading suggests there will be two quarter-percentage-point cuts by the end of 2026, according to the CME FedWatch Tool.
The S&P 500 was down almost 0.1% on Wednesday morning, while Asia-Pacific markets were mixed Wednesday.
— CNBC's Pia Singh contributed to this market report.