The European stock market closed slightly higher on Wednesday. LVMH's performance figures are reassuring. Adidas soared, driven by profit expectations, offsetting the sharp decline in technology stocks.
The Stoxx Europe 600 Index recovered earlier gains and closed up 0.2%. Luxury stocks such as Hermès, Burberry, and Richemont Group rose. Previously, LVMH's profit figures allayed concerns about demand for luxury goods. Asos Plc surged, and the online fashion retailer expects its profits to grow in the next fiscal year.
Technology stocks fell 2.6%. The order data previously announced by Asma Holdings fell short of expectations, dragging down other chip stocks such as ASM International NV and AIXtron SE. The sector experienced the worst sell-off since July. Previously, the Stoxx 600 Technology Index surged 25% over the past year, with Asma Holdings rising more than 50%.
Mathieu Racheter, head of stock strategy at Switzerland's Baosheng Group, said that volatility is likely to increase from April to October due to the US election and heightened geopolitical tension. However, Racheter recommended continuing to invest and said, “This will be an opportunity for investors to prepare for the next cycle.”