European Shares Steady as Tech Gains Offset Miner Losses Amid Earnings and ECB Outlook

European stocks opened flat on Tuesday, with gains in the technology sector balancing out losses in metal miners. This balanced start follows the market’s best performance in over a month on Monday.

Driving the technology sector’s upward momentum were strong earnings reports from software giant SAP and computer peripherals manufacturer Logitech. SAP’s 6.2% surge, fueled by a 25% growth in its cloud business and exceeding revenue expectations, significantly boosted the technology sub-index. Similarly, Logitech’s 2.3% increase came after the company raised its full-year outlook based on robust quarterly growth.

However, a 1.5% decline in metal miners, linked to concerns over demand from China, the world’s largest copper consumer, tempered the overall market gains. This concern over Chinese demand also exerted downward pressure on copper prices.

While the market remains relatively stable, attention is shifting towards the upcoming release of new data and macro-economic projections. These insights are expected to play a crucial role in informing the European Central Bank’s (ECB) reassessment of its monetary policy stance in September, as indicated by ECB Vice President Luis de Guindos.

Overall, the European stock market is experiencing a balanced start to the day, with technology gains offsetting miner losses. As investors digest earnings reports and anticipate the ECB’s policy review, market dynamics are likely to remain fluid in the coming weeks.