European shares reached the highest record on Wednesday, because the maker of the ASML Chip Equipment (US: ASML) led a higher technology shares after reporting a strong quarterly results.
Pan-European Stoxx 600 rose 0.5%, at 0923 GMT, rising through closed throughout Tuesday.
ASML shares jumped 11.2% after the Dutch company reported a fourth quarter that was better than the estimated 7.09 billion euros ($ 7.39 billion).
Asml’s income also convinces investors that the prospect of AI chip is still healthy, because they recovered from the sale action earlier this week which was triggered by the release of the Deepseek Chinese model, which used less computing power compared to rivals.
Stmicroelectronics, to semiconductor and ASM International (US: ASMI) rose between 2.1% and 7.2%.
Technology is the top winning sector, soaring 4.5%, and is set for the best day in a year.
“Today you see that at least ASML still gets profit from the request from the chip sector … It seems that for now, concerns for all AI and supply chains for AI have been excessive,” said Teeuwe Mevissen, senior economist in the senior market in Rabobank.
Other shares exposed to AI such as Schneider Electric (EPA: Schn) and Siemens (ETR: Siegn) Energy, which was hit on Monday, were traded 5.8% and 1.7% higher respectively.
Meanwhile, Swedish truck maker Volvo (OTC: VLVLY) jumped around 7% after reporting a strong order in the fourth quarter. Stocks help lift the industrial goods sector by 1.3%.
Limiting the overall profit, LVMH fell 5.6% because the growth of the sales of luxury goods failed to impress investors, following a series of strong results from rivals and new prices.
Dry rivals (EPA: PRTP) and Christian Dior (EPA: Dior) also decreased by 6.4% and 5.2% each. Benchmark French CAC 40 Index loses 0.2%.
The main event for that day was the Federal Reserve US monetary policy decision, with the central bank it was expected to keep the policy price unchanged.
The European central bank is expected to cut interest rates of 25 basis points on Thursday, with investors expect policy makers to overcome the impact of Donald Trump’s trading task proposed on block policy prospects.
At the front of the data, the growth of the euro zone was accelerated in December, showing that a series of interest rates had begun to transmit to the real economy.
German consumer sentiment is regulated to dip towards February due to increased pessimism between households about their economy and the prospect of their income.
The Spanish economy expanded 3.2% stronger than expected in 2024, outperforming his Euro zone colleagues.
Source: Reuters
