European stocks edged lower on Thursday, weighed by a decline in technology shares after U.S. giant Alphabet reported its quarterly results, as markets monitored developments in the Middle East conflict ahead of the European Central Bank's monetary policy meeting.

The pan-European STOXX 600 index fell 0.5% to 643.47 points by 07:05 GMT. Technology shares dropped 2.7%, with STMicroelectronics leading the losers with a 15% decline, after the chipmaker forecast third-quarter net revenues slightly below market expectations.

Shares of BE Semiconductor Industries also fell 4.6% after reporting its second-quarter financial results.

Alphabet, Google's parent company, on Wednesday raised its 2026 capital expenditure plans by $15 billion, raising concerns about whether its massive investments in artificial intelligence will yield tangible returns.

In contrast, the European energy sector index rose 0.6% as Brent crude futures climbed above $96 a barrel, after the United States launched a new round of strikes on Iran and Houthi militants in Yemen targeted oil tankers in the Red Sea, widening geopolitical tensions and complicating global interest rate expectations.

European markets are in a busy corporate earnings season, with investors assessing financial reports from major companies including Nestlé and TotalEnergies.

All eyes are on the European Central Bank's monetary policy decision on Thursday, with widespread expectations that the bank will keep interest rates unchanged.

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