Written by Paolo Laudani and Ankika Biswas
(Reuters) – European tech and luxury goods stocks fell on Wednesday after disappointing results from industry giants ASML (AS:) and LVMH, amid caution ahead of the European Central Bank’s policy decision. did.
The continent-wide index fell 0.3%, further retreating from more than two-week highs reached early Tuesday.
“This could be the start of a small reversal, but investor appetite remains at current levels, if not further,” said Daniella Hathorne, senior market analyst at Capital.com. “We expect it to remain at that level,” he said.
ASML, the world’s largest chip-making equipment maker, fell another 5%, pushing the tech index down 1.3% to a one-month low. The weak 2025 sales outlook released on Tuesday triggered the biggest single-day decline in four years and sent semiconductor stocks tumbling globally.
The luxury goods sector was also of little consolation. France’s LVMH fell 4.5% after announcing a decline in third-quarter sales, leaving the French company underperforming most major European stock exchanges.
Hathorn said LVMH’s profits justified concerns about Chinese spending and were likely to weigh on global stocks.
Gucci owner friend kering (EPA:), Birkin bag maker Hermès and Cartier owner Richemont each fell about 2%. The broader luxury goods index and the personal and household goods index each fell about 2%.
Both indexes have underperformed the STOXX 600 since the beginning of the year. Companies in China are grappling with declining sales in the world’s second-largest economy after the latest stimulus package temporarily lifted sentiment.
Shoe maker Adidas (OTC:) fell 4% despite raising its full-year sales and profit outlook.
But London markets bucked the trend to rise 0.6% after data showed Britain’s inflation rate fell more than expected in September, paving the way for a rate cut next month.
Market participants expect the ECB to cut interest rates by another 25 basis points on Thursday, potentially sending stock prices higher.
The index tracking Europe’s energy companies rose 0.9%, making it the top sector gainer as oil prices stabilized after falling to their lowest in almost two weeks on Tuesday.
Among individual stocks, Stellantis (NYSE:) fell 2% after warning that consolidated shipments for the third quarter would decline by 20%.
Just Eat Takeaway fell more than 2% after the food delivery company missed expectations for total trading in the third quarter.
Tecan fell 12% after the Swiss life sciences equipment maker cut its full-year outlook.
Teleperformance rose 6% after Kepler Schubel upgraded the office services and call center company’s stock from “hold” to “buy.”
