European stocks are stable amid mixed business results

In early trading on Wednesday, European stocks showed little change, with gains in the technology sector offsetting losses in the banking sector. Investors were evaluating the impact of monetary tightening on companies’ performance and financial results.

The European STOXX 600 index edged up by 0.1 percent by 0720 GMT, hovering around its highest level in a week. The technology sector led the gains, rising by 2.4 percent.

Technology stocks received a boost after ASM International raised its second-quarter profit expectations, citing stronger-than-expected demand from China and higher sales of certain products. This announcement propelled the company’s shares up by 12.2 percent.

However, losses in the banking sector in the eurozone, down by 0.9 percent, tempered the overall gains. The sector was pressured by a 9.6 percent decline in the Swedish stock of Handelsbanken, which reported first-quarter net profits below market expectations due to increased expenses.

Stocks also faced downward pressure from Swiss pharmaceutical company Roche, which saw a 2.3 percent decline after reporting a 6 percent drop in sales in the first quarter. Additionally, Kering shares fell by 9.3 percent after the luxury goods manufacturer forecasted a decline of between 40 and 45 percent in operating profits for the first half.