FX.co ★ European Stocks Fall, ASML and Renault Tumble

On Wednesday, the STOXX 50 saw a decline of 0.6%, while the STOXX 600 fell by 0.3%, as investor attention shifted to the latest series of corporate earnings reports. Shares of ASML Holding dropped over 6% following the company's cautionary statement about the lack of growth potential by 2026. This caution was attributed to macroeconomic and geopolitical uncertainties, such as the possibility of tariffs on new systems and parts shipped to the United States and potential retaliatory actions from other nations. Despite these warning signs, ASML surpassed its second-quarter revenue and earnings estimates. Renault also experienced a significant decrease, plunging over 17% after revising its margin outlook for the year downward. Other significant losses included AstraZeneca, down 1.3%, and Siemens Energy, which declined by 1.9%. In contrast, Richemont experienced a near 1.5% increase after reporting second-quarter revenue that exceeded expectations, although concerns about margin pressures persist. Furthermore, trade tensions were under scrutiny, as President Trump expressed the possibility of imposing tariffs on pharmaceuticals by the month's end and hinted at potential tariffs on semiconductors shortly thereafter.