(Bloomberg) — European stocks reached a fresh record high as ASML Holding NV’s strong earnings supported the sentiment after this week’s tech jitters.
The Stoxx Europe 600 Index was up 0.5% at the close in London, with technology stocks leading gains. ASML soared as much as 12%, the most in almost five years, after the Dutch company booked more than twice as many orders as analysts expected in the fourth quarter. Luxury stocks lagged, with LVMH dropping 5% on underwhelming sales figures.
ASML’s earnings were key to sustaining the European shares rally, after Chinese startup DeepSeek had challenged research spending of big tech firms with its cheap AI model on Monday.
“The underlying situation of the market is fine with positive fundamentals and some good corporate results,” said Francisco Simón, European head of strategy at Santander Asset Management.
Traders are also focusing on central bank meetings this week. The Federal Reserve is expected to leave US interest rates steady later Wednesday, giving policymakers more time to assess how President Donald Trump’s policies will affect the economy and inflation. The European Central Bank takes center stage Thursday, with investors anticipating a quarter-point cut.
“We expect that the Fed will maintain a cautious message and will not want to commit to a cut in March as it awaits further data,” Simón said.
In other individual stocks, shares in Remy Cointreau SA fell after the French Cognac maker said full-year sales will come in at the lower end of the guidance. Swedish lender SEB AB dropped after its net profit missed estimates and dividend per share underwhelmed analysts.
For more on equity markets:
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- US Stock Futures Fall; Manhattan Associates, LendingClub Fall
- Relief for Renters: The London Rush
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–With assistance from Michael Msika.
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