European Markets Wobble as Luxury and Tech Struggle

European stock markets witnessed a decline as the STOXX 600 settled lower, impacted by poor performances in the tech and luxury sectors. Major influences included disappointing results from ASML and LVMH and the imminent European Central Bank policy decision. Travel and leisure stocks, however, showed gains.

In a volatile trading session, European markets slid on Wednesday, primarily due to weak performances in the tech and luxury sectors. The STOXX 600 index recorded a 0.2% drop, maintaining a downward trend after reaching an over two-week high on Tuesday.

The tech sector suffered notably as ASML, a giant in chipmaking equipment, fell 5.1% to a ten-month low. This sharp decline was attributed to an underwhelming 2025 sales forecast. Analysts suggest that recent cost-cutting measures by ASML's clients, including Intel, might have contributed to these results.

The luxury market also lagged, with France's LVMH leading a sector-wide drop after weaker-than-expected sales. Despite the overall market downturn, sectors like travel and leisure showed resilience, led by a 6% rise from Whitbread following positive booking trends.

(With inputs from agencies.)