European tech, luxury stocks tumble as ASML, LVMH results disappoint
By Paolo Laudani and Ankika Biswas
(Reuters) – Europe’s tech and luxury stocks slumped on Wednesday after disappointing results from industry heavyweights ASML (AS:ASML) and LVMH, while caution loomed ahead of the European Central Bank’s policy decision.
The continent-wide STOXX 600 index was down 0.3%, retreating further from the over two-week high hit early on Tuesday.
“It could be the start of a minor reversal, but we still see investors’ appetite hold at current levels, if not go further,” said Daniela Hathorn, senior market analyst at Capital.com.
ASML, the world’s biggest chipmaking equipment manufacturer, shed another 5% and dragged the tech index down 1.3% to a one-month low. Its weak 2025 sales forecast on Tuesday sparked its steepest one-day decline in four years and triggered a sell-off in chip stocks globally.
The luxury sector did not offer any solace either, as France’s LVMH dropped 4.5% after reporting a fall in third-quarter sales, prompting the French CAC 40 index to underperform most major European bourses.
LVMH’s earnings justify the concerns over Chinese spending and are likely to weigh on global equities, Hathorn said.
Peers Gucci-owner Kering (EPA:PRTP), Birkin bag-maker Hermes and Cartier-owner Richemont fell around 2% each. The broader luxury and personal and household goods indexes shed about 2% each.
Both the indexes have underperformed STOXX 600 so far this year. China-exposed firms have grappled with dwindling sales in the world’s second-biggest economy, with sentiment getting a boost briefly from the latest stimulus measures.
Shoemaker Adidas (OTC:ADDYY) fell 4% despite raising its full-year sales and profit guidance.
However, London’s FTSE bucked the trend to rise 0.6% after data showed British inflation fell more than expected in September, paving the way for a rate cut next month.
Market participants expect the ECB to cut rates by another 25 basis points on Thursday, which could boost stocks.
The index tracking European energy companies rose 0.9%, topping sectoral gainers, as oil prices stabilised after tumbling to a near two-week low on Tuesday.
Among single stocks, Stellantis (NYSE:STLA) fell 2% after warning of a 20% drop in third-quarter consolidated shipments.
Just Eat Takeaway lost over 2% after the food delivery company missed expectations for third-quarter gross transaction value.
Tecan dropped 12% after the Swiss life science equipment maker cut its annual outlook.
Teleperformance rose 6% after Kepler Cheuvreux upgraded the office services and call centre company’s stock to “buy” from “hold”.
