European stocks edged lower at the start of Wednesday's trading, pressured by declines in technology stocks, as investors remained cautious ahead of earnings results from major US tech companies, while also monitoring rising tensions in the Middle East.

The pan-European STOXX 600 index fell 0.3% to 641.12 points by 07:06 GMT, according to Reuters.

Investors are awaiting results from Alphabet and Tesla, looking for clues on whether the rally in AI stocks can sustain its momentum, amid concerns over sector valuations and the scale of technology spending.

Shares of technology companies on the STOXX 600 fell 1.7%, with Soitec and Aixtron shares declining 2.3% and 2.6%, respectively.

The European energy sector gained 0.4%.

On individual stocks, Spain's Banco Santander fell 1.3%, despite the bank reporting a 17% rise in its underlying net profit for the second quarter.

In contrast, shares of Finland's Hiab, a manufacturer of load-handling equipment, jumped more than 10% to lead gains on the STOXX 600, after a rise in orders in the second quarter.