European markets moved slightly higher on Wednesday as commodity-focused stocks led the advance while technology shares weakened on mixed chip-sector results. By 0704 GMT the pan-European STOXX 600 had gained 0.35% to reach 648.54 points.
Commodity-linked sectors were the day's strongest performers on a percentage basis. Miners climbed 1.5%, helped by a 4% rise in Glencore after the company reported a 15% increase in first-half copper production, citing higher ore grades at key operations. Energy stocks rose 1.6% as Brent crude futures jumped roughly 3% to trade above $86 a barrel following joint strikes by the U.S. and Saudi Arabia in Iraq - an action that the market viewed as having the potential to escalate the ongoing U.S.-Iran conflict.
Investors in Europe balanced company earnings and macro developments as corporate results continued to roll in across the region. The personal and household goods sector registered a 1.2% gain, supported by a 10.7% surge in Kering after the group's report showing second-quarter sales at its flagship brand, Gucci, fell by less than market expectations.
In contrast to the commodity strength, technology stocks eased 0.4% on the session. South Korean chipmaker SK Hynix posted strong quarterly results but fell short of very high investor expectations; the report amplified concerns that big technology companies may scale back AI-related spending. Market participants also flagged the upcoming policy statement by U.S. Federal Reserve Chair Kevin Warsh as a focal point for potential guidance on the central bank's next steps.
Overall, the market reaction reflected a mix of sector-specific updates and broader geopolitical and policy drivers: stronger commodity production and higher oil prices supported miners and energy names, while technology faced renewed scrutiny after an important semiconductor supplier's performance failed to fully satisfy market hopes.
Market snapshot
- STOXX 600: +0.35% to 648.54 (0704 GMT)
- Miners: +1.5%
- Glencore: +4% after +15% H1 copper production
- Energy sector: +1.6%; Brent crude futures: +3% to over $86/bbl
- Personal & household goods: +1.2%; Kering: +10.7%
- Technology sector: -0.4%; SK Hynix (000660) underperformed despite strong quarterly results