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July 16 (Reuters) - European shares were subdued on Thursday

as investors assessed fresh corporate earnings reports and M&A

activity amid escalating tensions in the Middle East that

threatened to fuel energy inflation in the region.

The pan-European STOXX 600 index slipped 0.1% to

641.95 by 0712 GMT, with most sectors trading marginally lower.

Tech stocks were mixed. Chip equipment maker ASML's shares

were up 2% in early trading, while most other

semiconductor stocks, STMicroelectronics and BE

Semiconductor edged down.

There was overall global relief after Taiwan's TSMC,

the world's largest producer of advanced AI chips, reported a

record 77% jump in second-quarter profit, suggesting strong

demand for AI infrastructure was strong.

Also offering markets some solace over imminent AI disruption

was Publicis. Shares of the French advertising group

added 1.4% after reporting higher first-half net revenue, driven

by strong demand for AI-driven marketing services.

Elsewhere, ABB slipped 1% after the industrial

company announced a $5.5 billion takeover of automation company

Rotork ( RTOXF ), and it said its second-quarter operating profits

beat expectations. The UK company's shares soared 66%.

U.S.-based Uber ( UBER ) said it launched a public takeover

offer for Delivery Hero, valuing the German food

delivery company at about $14.8 billion. Shares of Delivery Hero

slipped 1%, after rallying earlier this year following reports

about the bid.

Global market sentiment was guarded after fresh U.S. and

Iranian military strikes raised fears of a wider regional

conflict, and Brent crude prices traded near $85 a barrel.