Market Analysis

European stocks remained steady on Wednesday, holding close to a one-month low, as investors focused on quarterly earnings updates from major companies like ASML, LVMH, and Adidas, while also monitoring developments in the Middle East.

The STOXX 600 index stayed unchanged at 0717 GMT, following its sharpest decline in nine months in the previous session due to rising concerns about geopolitical tensions.

Investors are keenly watching first-quarter earnings reports to gauge the performance of European corporations amid the backdrop of heightened interest rates. According to LSEG data, overall profits are anticipated to have fallen by 12.1% compared to the previous year.

ASML was among the notable movers, dropping 4.8%, which contributed to a 1.8% decline in the technology sector following disappointing new booking figures reported in its first-quarter earnings.

Conversely, LVMH saw a 2% increase, helping to offset losses on the benchmark index after the luxury group reported a 3% rise in quarterly sales, offering some relief to investors worried about the sector's prospects, particularly in China.

Adidas experienced a notable surge of 5.4% as the German sportswear giant raised its outlook for 2024 following better-than-expected preliminary results for the first quarter.

Paraphrasing text from "Investing UK" all rights reserved by the original author.