European shares hold amid ASML, LVMH reports

European shares remained steady on Wednesday, lingering near a low of over a month as investors focused on quarterly earnings reports from major companies such as ASML, LVMH, and Adidas while also keeping an eye on developments in the Middle East, Reuters reported.

The STOXX 600, a broad index of European shares, was unchanged at 07:17 GMT follows its worst performance in nine months during the previous session, driven by concerns over escalating geopolitical tensions.

First-quarter earnings reports are set to provide insights into the health of corporate Europe amidst high interest rates. According to LSEG data, overall profits are projected to have fallen by 12.1 per cent compared to the previous year.

Among the most significant movers, ASML saw a 4.8 per cent drop, leading to a 1.8 per cent decline in the technology sector, which came after the Dutch company reported lower-than-expected new bookings in its first-quarter earnings.

In contrast, LVMH, the world’s largest luxury group, reported a 2 per cent rise, helping to offset losses on the benchmark index. The company’s quarterly sales increased by 3 per cent, providing some reassurance to investors worried about the industry’s future, especially in China.

Adidas further saw a significant 5.4 per cent jump after the German sportswear giant raised its 2024 outlook following better-than-expected preliminary results for the first quarter.