European stocks gain on ASML sales forecast; U.S. CPI test awaited

European stock markets experienced a positive shift on Wednesday, as ASML's robust fourth-quarter sales forecast sparked renewed interest in technology equities. This boost in sentiment helped continental indices maintain stability despite cautious remarks from the European Central Bank (ECB). The Stoxx Europe 600 Index increased by 0.62%, while Germany's DAX and France's CAC 40 climbed 0.65% each, with London's FTSE 100 gaining 0.4%.

ASML, the leading semiconductor lithography firm, was the primary driver behind the tech sector's rally, with its shares surging 1.9% after announcing a fourth-quarter sales projection exceeding market expectations. The company's advanced lithography tools saw consistent demand due to global AI datacenter expansion. Although ASML slightly revised its full-year 2026 sales forecast, analysts were more focused on the impressive Q4 bookings and AI infrastructure capital expenditure, which fueled semiconductor peers like ASM International and Infineon Technologies, both rising by 1.5% and 1.6%, respectively.

Meanwhile, ECB President Christine Lagarde tempered expectations of central bank interventions to support European sovereign debt. During an interview with Reuters, Lagarde emphasized that the "primary and first solution lies at home in France" and urged Parisian lawmakers to address the country's debt issues through strict fiscal consolidation.

By dismissing the possibility of emergency tools, such as the Transmission Protection Instrument (TPI), Lagarde reinforced the notion that investors must continue to account for a higher risk premium on French OATs as Paris navigates its 5.4% GDP deficit.

Despite the early gains, market participants maintained a cautious approach ahead of the U.S. Consumer Price Index (CPI) release. With benchmark 10-year Treasury yields nearing multi-decade highs above 5.20%, macro investors were closely monitoring the inflation data for clues about the Federal Reserve's forthcoming policy stance.

A higher-than-anticipated CPI figure could prompt an imminent rate hike, putting pressure on the valuation multiples of global growth stocks. Among individual stocks, Sweden's SEB declined 5% following a temporary increase in the country's bank regulator's capital requirements.