LVMH Falls, ASML Rises—European Stocks Heave a Breath
European stocks moved sluggishly in morning trading, as pressure from the luxury goods sector curbed gains in the technology sector. The Stoxx Europe 600 Index was flat, with mining stocks showing strength, while media and consumer staples were among the laggards.
The luxury sector fell after LVMH plunged 6.4%. The market was disappointed as the company reported a worse-than-expected decline in organic sales for its fashion and leather goods division in the fourth quarter. Meanwhile, the technology sector strengthened as ASML surged 6.1% after posting strong fourth-quarter orders and announcing a share buyback program of up to €12 billion.
Overall, European markets are recovering from last week's pressure triggered by concerns about trade tensions with the US. However, investors remain cautious as the focus is on the Federal Reserve's decision, which will be announced today, with expectations of a steady interest rate—which could potentially determine the direction of risk appetite going forward. (az)
Source: Newsmaker.id