European shares fall as tech weighs ahead of US big tech earnings; Mideast in focus

July 22 (Reuters) - European shares edged lower on Wednesday, dragged down by technology stocks as caution prevailed ahead of earnings from U.S. big techs, while investors assessed escalating Middle East tensions.

The pan-European STOXX 600 index slipped 0.3% to 641.12 points by 0706 GMT.

Investors will look to results from Alphabet and Tesla for clues on whether the rally in AI-related shares has more room to run.

Tech stocks on the STOXX 600 dipped 1.7%, with Soitec and Aixtron down 2.3% and 2.6%, respectively.

Meanwhile, Brent crude edged higher after three tankers carrying Saudi oil to Asia turned back from the Red Sea following threats from Yemen's Iran-backed Houthis, raising concerns over supply disruptions. [O/R]

The energy sector gained 0.4%.

Among stocks, Spanish lender Santander fell 1.3% despite reporting a 17% increase in second-quarter underlying net profit.

Finland's load-handling equipment maker Hiab jumped over 10% to top the STOXX 600 after higher second-quarter orders.

(Reporting by Tharuniyaa Lakshmi in Bengaluru)