Shortly before noon, the CAC40 was down by about 0.9% at around 8,080 points, while the pan-European Stoxx Europe 600 index slipped 0.4%. Meanwhile, S&P 500 futures were indicating a 0.3% gain for the US index on Wall Street at this stage.

Caution continues to dominate the markets ahead of the Federal Reserve's announcements, which are expected tonight after two days of debate within its monetary policy committee (FOMC).

While another rate hold for the federal funds rate is widely expected, investors are looking to the Fed for more clarity on the timeline for monetary easing in the coming months.

"This pause should not be mistaken for the end of rate cuts: we expect two cuts in the second quarter after a quiet first quarter," warns Alessia Berardi, head of macroeconomics at Amundi Investment Institute.

"As services inflation moderates and the labor market loosens, clearer signs of disinflation will emerge, giving the Fed the necessary room to ease policy," the analyst notes.

While awaiting this key event of the week, European investors are focusing on this morning's earnings releases across the continent, cheering ASML's results but heavily punishing those of LVMH.

ASML surged nearly 6% in Amsterdam, buoyed by a strong update from the chip equipment maker, notably marked by robust orders and allowing the company to reward its shareholders generously.

The Dutch specialist's growth prospects, boosted by demand linked to AI, are also reviving appetite for the entire European chip sector, benefiting Infineon (+6%) and STMicroelectronics (+4%) in particular.

Conversely, LVMH plunged 6%, making it the biggest loser on the CAC40 in Paris, after results deemed disappointing for the global luxury leader, dragging down peers Kering (-2%) and Hermès (-1%) in its wake.