ASML Strengthens, European Stock Exchanges Stuck
European stock exchanges moved cautiously at the start of trading Wednesday (15/7). Investors are still weighing positive sentiment from ASML's strong performance report, against pressure from the fall in IBM shares on Wall Street that rocked the global technology sector.
The STOXX 600 index is moving around the flat level, reflecting the market's wait-and-see attitude. Meanwhile, Germany's DAX fell nearly 1%, France's CAC 40 fell 0.4%, and the UK's FTSE 100 fell 0.6%.
ASML became the market's main support after its shares rose 3.3%. Europe's most valuable technology company recorded second-quarter sales that exceeded expectations, driven by strong demand for artificial intelligence or AI chips. ASML also raised its full-year performance forecast, signaling that AI trends are still strong on the hardware side.
However, this optimism was tempered by the negative impact from IBM. IBM shares plunged 25% on Wall Street after preliminary second-quarter results showed disappointing earnings. IBM's statement that enterprise clients are starting to shift budgets to AI-based servers and storage pressured other European technology shares, such as SAP, which fell 2.1% and Capgemini, which fell 1.1%.
From a macro perspective, other European investors, such as SAP, fell 2.1% and Capgemini fell 1.1%.
The next focus will be on eurozone industrial production data. This data will be an important measure of the health of Europe's manufacturing sector, especially after PMIs in Germany and France still look weak. If the results are strong, cyclical stocks could get a boost. However, if it disappoints, concerns about an economic slowdown and inflationary pressures could again weigh on the market.(asd)
Source: Newsmaker.id
