European markets surged to new heights on Wednesday, driven by a strong performance in the technology sector, with semiconductor giant ASML leading the charge.
The pan-European STOXX 600 climbed 0.5% by 08:10 GMT, surpassing its previous record close from Tuesday. The rally was fueled by ASML, whose shares soared 10.6% after the Dutch semiconductor equipment maker reported better-than-expected fourth-quarter bookings of €7.088 billion ($7.39 billion).
ASML’s stellar results had a ripple effect across the sector, with peers ASM International, BE Semiconductor, and Infineon gaining between 2.7% and 7.5%. As a result, the technology sector emerged as the biggest winner of the day, surging 4.5%.
While tech stocks stole the spotlight, the luxury goods sector faced a setback. Shares of LVMH dropped 5%, as its latest sales figures fell short of investor expectations despite strong performances from industry peers in previous quarters.
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Luxury rivals Kering and Christian Dior also saw their stocks decline, falling 6% and 5%, respectively. The downturn in luxury shares weighed on France’s CAC 40 index, which slipped 0.4%.
Investors are now eagerly awaiting the U.S. Federal Reserve’s monetary policy decision, expected later in the day. Markets widely anticipate that the Fed will keep interest rates unchanged in the 4.25%-4.50% range, as policymakers assess inflation and economic growth trends.
As earnings season continues and central bank decisions loom, European markets remain in focus, with technology stocks showing resilience while luxury names face headwinds. Stay tuned for further updates on market movements.