European stocks edge higher, while automotive and energy sectors remain under pressure

⑴ European stock markets edged higher on Wednesday, with both the STOXX 50 and STOXX 600 rising by 0.1%. This follows gains of about 1% and 0.4% respectively in the previous two sessions, with both indices hitting record highs. Investors paused to assess the recent gains while awaiting further details on the US-Iran agreement to reopen the Strait of Hormuz. Market participants are also focusing on the Federal Reserve’s monetary policy decisions.⑵ ASML rose 1.5%, Schneider Electric gained 1.3%, and UniCredit climbed 1%. Leonardo increased 1% after the Italian government conditionally approved the company’s joint venture with Baykar. The automotive sector performed the weakest, with BMW shares falling more than 6% after the automaker lowered its earnings guidance.⑶ Energy stocks also declined as oil prices fell for the fifth consecutive session, with Shell down 1.3%, TotalEnergies down 0.7%, and BP down 1.5%.