European markets reach record high as ASML leads Tech surge
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European equities extended their rally on Wednesday, with the STOXX 600 index rising 0.5% as of 08:10 GMT, marking a fresh record high. The rally was fueled by strong earnings from semiconductor giant ASML, which jumped 11.29% after posting better-than-expected Q4 bookings of €7.088 billion ($7.39 billion).
Technology stocks were the session's standout performers, with ASM International climbing 6.60%, BE Semiconductor gaining 6.26%, and Infineon advancing 7.5%. The SX8P technology index surged 4.5%, making it the best-performing sector in Europe.
Luxury Stocks Drag Lower as LVMH Disappoints
While tech led the charge, the luxury sector faced significant pressure after LVMH fell 5% on earnings that failed to meet lofty investor expectations. The stock decline weighed on sector peers, with Kering down 6% and Christian Dior sliding 5%. As a result, France’s CAC 40 index dropped 0.4%, making it the underperformer among major European benchmarks.
Eyes on the Federal Reserve's Policy Decision
Market sentiment remains cautious ahead of the Federal Reserve's monetary policy decision later today. The central bank is widely expected to hold interest rates steady at 4.25%-4.50%, but investors will be closely watching for any hints on the timing of future rate cuts.
With ASML’s stellar results reinforcing confidence in Europe’s tech sector, traders will assess whether this momentum can offset broader macroeconomic risks, including potential market volatility post-Fed decision.
Technology stocks were the session's standout performers, with ASM International climbing 6.60%, BE Semiconductor gaining 6.26%, and Infineon advancing 7.5%. The SX8P technology index surged 4.5%, making it the best-performing sector in Europe.
Luxury Stocks Drag Lower as LVMH Disappoints
While tech led the charge, the luxury sector faced significant pressure after LVMH fell 5% on earnings that failed to meet lofty investor expectations. The stock decline weighed on sector peers, with Kering down 6% and Christian Dior sliding 5%. As a result, France’s CAC 40 index dropped 0.4%, making it the underperformer among major European benchmarks.
Eyes on the Federal Reserve's Policy Decision
Market sentiment remains cautious ahead of the Federal Reserve's monetary policy decision later today. The central bank is widely expected to hold interest rates steady at 4.25%-4.50%, but investors will be closely watching for any hints on the timing of future rate cuts.
With ASML’s stellar results reinforcing confidence in Europe’s tech sector, traders will assess whether this momentum can offset broader macroeconomic risks, including potential market volatility post-Fed decision.