European equities were mostly lower on Wednesday, reversing early gains and extending losses for a second consecutive session. The STOXX 50 fell 0.7%, while the STOXX 600 closed little changed. ASML Holding tumbled 4% after a Reuters report showed a team in Shenzhen had completed a working prototype of an EUV machine in early 2025, which will potentially reduce China’s demand for ASML’s products. Siemens was also down 2% and Schneider Electric fell 2.9%. In contrast, defense stocks rebounded after Germany's parliamentary budget committee cleared more than €50 billion in defense contracts over the next few years. Safran rose 0.5%, while Rheinmetall climbed 1.7%. Energy stocks also posted gains, with BP up 0.9%, Shell rising 1.4%, and Eni advancing 0.5%. Investors are now bracing for a busy day of monetary policy decisions tomorrow. The ECB is widely expected to keep interest rates unchanged, while the BoE is almost certain to resume its rate-cutting cycle.