European equities reached a one-week high on Tuesday even as a chip-sector sell-off and weak luxury earnings weighed on individual names. Falling sovereign bond yields and moderating energy prices supported risk appetite, while Wall Street banks prepare to report third-quarter results.
European equity markets advanced to a one-week high on Tuesday, outperforming broader international markets. Falling sovereign bond yields and moderating energy prices lifted risk appetite, according to Investing.com.
The pan-European Stoxx Europe 600 Index rose 0.55%, its highest level since October 6. Asian tech hubs and Wall Street had posted steeper downturns overnight.
FTSE 100 leads regional gainers
London's FTSE 100 led regional gainers, rising about 0.7% as banks and commodity producers drew steady buying. France's CAC 40 advanced 0.3%, even with pressure on its luxury sector, while Germany's DAX rose 0.5% and Spain's IBEX 35 inched up 0.2%.
European technology shares, however, faced renewed selling pressure, tracking a global chip sell-off. Reports of rapid progress at China's ChangXin Memory Technologies fed concerns that Chinese suppliers are narrowing the technology gap faster than anticipated.
ASML Holding dropped 1.8% ahead of its third-quarter earnings on Wednesday. STMicroelectronics, Soitec and Infineon Technologies slid between 1.4% and 2.3%.
Luxury slips while Givaudan surges
Earnings split stocks sharply. Shares of LVMH dropped 1.3% after the luxury group reported weaker-than-expected third-quarter organic sales, with softer demand in China weighing on Louis Vuitton and Dior.
Givaudan, by contrast, surged 7.4% after its third-quarter organic sales beat consensus expectations. Finnair shares climbed 11% to a three-week high after the airline raised its full-year revenue and comparable operating profit forecast.
Energy prices and bank earnings in focus
Crude oil and natural gas prices hovered near two-week highs, and European natural gas futures held above €82/MWh. Investing.com linked this to ongoing attacks on commercial shipping in the Strait of Hormuz, and energy-heavy sectors caught a steady bid.
JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo are set to release Q3 results on Tuesday. In Europe, Swedish private equity firm EQT AB will report later, offering a window into European dealmaking and private credit performance.
Source: Investing.com
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