17.12.202516:34:22UTC+00European Stocks Cut Gains

European equities experienced declines on Wednesday, reversing early gains and marking the second straight day of losses. The STOXX 50 dropped by 0.7%, while the STOXX 600 remained relatively stable. Notably, ASML Holding saw a 4% decline following a Reuters report indicating that a team in Shenzhen had successfully developed a prototype of an EUV machine, anticipated to be operational by early 2025, which could potentially decrease China's demand for ASML's products. Siemens and Schneider Electric also faced declines, falling by 2% and 2.9%, respectively. Conversely, defense stocks experienced a recovery as Germany's parliamentary budget committee approved defense contracts exceeding €50 billion over the upcoming years. This bolstered stocks such as Safran, which rose 0.5%, and Rheinmetall, which ascended by 1.7%. Additionally, energy stocks recorded gains, with BP increasing by 0.9%, Shell advancing by 1.4%, and Eni climbing 0.5%. Investors are now preparing for an active day of monetary policy decisions ahead. The European Central Bank (ECB) is projected to keep interest rates steady, while the Bank of England (BoE) is anticipated to resume its cycle of rate cuts.