European shares start weakly on tech, luxury disappointment

(Reuters) – European shares had a weak start on Wednesday, ahead of the European Central Bank policy decision and bogged down by tech and luxury shares after disappointing results from industry bellwethers ASML and LVMH.

The continent-wide STOXX 600 index was down 0.3% at 0702 GMT.

ASML, the world’s biggest chipmaking equipment manufacturer, shed another 4% and dragged tech stocks down 1.2% to a one-month low. Its weak 2025 sales forecast on Tuesday had sparked its steepest one-day decline in four years and triggered a sell-off in chip stocks globally.

The luxury sector did not offer any solace either, as France’s LVMH dropped 7% after reporting a fall in third-quarter sales and saying customer confidence in China had slumped to COVID-19 lows.

Peers Gucci-owner Kering, Birkin bag-maker Hermes and Cartier-owner Richemont fell between 2.1% and 5.3%.

That led to a 2% drop in the broader personal and household goods index, which also includes companies such as Burberry and Swatch.

However, London’s FTSE bucked the bloc-wide trend to rise 0.6% after data showed British inflation fell more than expected in September, paving the way for a rate cut next month.

Market participants expect the ECB to cut rates by another 25 basis points on Thursday, which could boost stocks.

Among single stocks, Stellantis fell 2% after warning of a 20% drop in third-quarter consolidated shipments.

Shoemaker Adidas fell 3% after its third-quarter results.

(Reporting by Paolo Laudani in Gdansk and Ankika Biswas in Bengaluru; Editing by Savio D’Souza)