European stocks traded steady near a record high as falls in HSBC Holdings Plc and Novo Nordisk A/S helped erase early gains. The benchmark Stoxx Europe 600 index was little changed, hovering close to its all-time peak reached earlier this week. Investors are closely watching corporate earnings and economic data for further direction.

HSBC shares declined after the banking giant reported a drop in first-quarter profit, despite revenue beating expectations. The bank cited a challenging economic environment and increased provisions for potential loan losses. Novo Nordisk, the Danish pharmaceutical company, also saw its stock price dip following a report that its popular diabetes drug, Ozempic, may face increased competition sooner than anticipated.

Despite these individual stock movements, the broader European market sentiment remains cautiously optimistic. Many analysts believe that corporate profits are holding up better than feared, and that the region's economy is showing signs of resilience. However, concerns about inflation and potential interest rate hikes by central banks continue to weigh on investor sentiment, leading to a more subdued trading environment.