European equities saw modest gains on Wednesday, lifted by strength in banking and energy shares, while losses in technology and automobile stocks limited the upside.
By 0712 GMT, the pan-European STOXX 600 was up 0.2% at 570.4 points. Regional markets were mixed, though Italy’s benchmark index outperformed with a 0.5% rise.
Banks led the advance, climbing 0.7%, supported by gains in Lloyds Banking Group (LSE:LLOY), Société Générale (EU:GLE), and BPER Banca (BIT:BPE). Oil and gas stocks also added 0.4%, following a rise in crude prices that boosted sector sentiment.
The automotive sector was a drag on the index after BMW (TG:BMW) tumbled 5.3%. The carmaker slashed its 2025 earnings forecast, citing changes in U.S. tariff assumptions and weaker-than-expected growth in China. The broader autos index fell 1.5%, with Mercedes-Benz (TG:MBG) sliding 3.1%.
Technology stocks also weighed on sentiment, down 1.1%, after U.S. lawmakers urged broader export restrictions on semiconductor manufacturing equipment to China. Dutch chip suppliers ASML (EU:ASML) and ASM International (EU:ASM) led the sector’s declines.
Investors are also monitoring developments in France, where mounting political pressure on President Emmanuel Macron to resign or call a snap election has fueled uncertainty. Despite the turmoil, French blue-chip stocks were up 0.2% in early trade.
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