European equities extended losses into a fourth consecutive session as disappointing earnings from ASML and Renault rattled investor confidence. The STOXX Europe 600 Index slipped 0.2%, marking its longest losing streak in a month.

French automaker Renault plunged 16% - its steepest single-day drop in over five years - after cutting its full-year margin outlook. Dutch semiconductor equipment giant ASML tumbled 6.7% after withdrawing its 2025 growth forecast amid global trade disputes.

Outperforming regional peers, Britain's FTSE 100 gained strength from a surprise surge in inflation to January 2024 highs that boosted the pound. Persistent uncertainty over potential U.S. trade measures continues to cap European market gains. Recent warnings from former President Trump about imminent tariffs on pharmaceuticals and semiconductors have amplified concerns.

Market attention now pivots to whether earnings season can reignite momentum. According to Bloomberg Intelligence data, analysts project a 4.8% year-on-year profit decline for MSCI Europe companies in Q2. "Corporate reports will likely deliver more disappointments," cautioned Susannah Cruz, strategist at Panmure Liberum.

Cruz noted exceptional difficulty in current forecasting, adding: "While markets have likely priced in pessimism for consumer goods, healthcare, and resources, significant downside risks emerge if China's economy weakens further."

In individual movers, luxury group Richemont defied the broader sector slump, climbing 2.4% after reporting better-than-expected sales figures.