European shares edge up after solid ASML results, healthcare gains
European shares notched slim gains on Wednesday after robust earnings from ASML reassured investors concerned about AI demand, while healthcare stocks hit their highest in over five weeks. The pan-European STOXX 600 index gained 0.43% to 637.75 points. The healthcare index was the biggest gainer on the benchmark, rising 2.3% to hit its highest since September 7. Additionally, shares of ASML rose…
European stocks experienced a slight rise on Wednesday, buoyed by strong financials from ASML and gains in the healthcare sector. The pan-European STOXX 600 index expanded by 0.43% to 637.75 points, with healthcare leading the rally, climbing 2.3% to its highest level since September 7. ASML shares also increased by 1.2% after the company announced that clients were already planning to order its advanced chipmaking tools for 2029 and 2030, indicating sustained demand.
Gordon Kerr, an European macro strategist at KBRA, noted that ASML has bolstered the argument that technology stocks continue to perform well, with robust demand for chips and ongoing infrastructure spending expected to persist through 2027.
Investors, however, remain cautious due to a mix of uneven earnings reports. LVMH, a luxury bellwether, disclosed weaker-than-expected third-quarter sales as a decline in Chinese consumer sentiment dampened demand for its key brands. Michael Field, chief equity market strategist for EMEA at Morningstar, warned that companies with significant exposure to higher energy prices and weak consumer sentiment might face challenges.
Despite oil prices fluctuating, Brent crude futures remained above $100 a barrel, contributing to market uncertainty. Inflation concerns arising from the Middle East conflict have fueled expectations of tighter monetary policy, with traders anticipating an 81% probability of a December interest rate hike by the European Central Bank, according to LSEG data.
Mining stocks suffered sectoral losses, with Fresnillo declining 4.6% after JPMorgan reduced its price target on the stock. Other significant movers included Orsted, down 3.9% following a report that the US would re-examine the permit for its wind farm near Rhode Island, and British IT firm Softcat, which dropped about 11% after revising its growth outlook for fiscal 2027 downward.
Swedish bank SEB fell 5% following a temporary capital requirement increase by the country's bank regulator due to issues in its internal risk models. GSK experienced a rise of 4.6% following a plan to eliminate up to 1,217 jobs in Belgium. Additionally, US inflation data for September revealed higher-than-anticipated consumer price increases, reigniting speculation about an interest rate hike by the Federal Reserve later in the month.
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