FX.co ★ European Stocks Cautiously Higher

European equities inched higher on Wednesday, with both the STOXX 50 and STOXX 600 up 0.1%. The moves came after gains of roughly 1% and 0.4%, respectively, over the previous two sessions, which had propelled both benchmarks to record highs. Investors paused to consolidate recent advances while awaiting further clarity on the US–Iran agreement to reopen the Strait of Hormuz. Market participants were also focused on the Federal Reserve’s monetary policy decision due later in the day.

Among individual names, ASML Holding rose 1.5%, Schneider Electric added 1.3%, and UniCredit gained 1%. Leonardo climbed 1% after the Italian government granted conditional approval for its planned joint venture with Baykar.

The auto sector lagged the broader market. BMW dropped more than 6% after the carmaker lowered its guidance, citing deteriorating conditions in China and the wider fallout from the Middle East conflict. Energy stocks also came under pressure as oil prices extended their losing streak to a fifth session. Shell declined 1.3%, TotalEnergies slipped 0.7%, and BP fell 1.5%.