Nvidia Earnings and Strait of Hormuz Tensions Keep European Stocks Flat

European stocks remained relatively flat on Wednesday as investors awaited Nvidia's earnings report for clues on whether the AI-driven spending boom can continue to justify lofty market expectations.

Nvidia is expected to forecast an 82.8% rise in third-quarter sales to $104.20 billion, with adjusted gross margin remaining around 75% for both the second and third quarters.

However, tech shares fell 1.1% ahead of the results, indicating some uncertainty among investors.

The Strait of Hormuz situation also contributed to a decline in oil prices, with Brent crude futures falling more than 2% to around $86 a barrel on prospects of increased oil flows through the strait.