European shares rise 1% on corporate gains, ASML leads

European shares climbed 1 per cent on Wednesday, reaching a two-week high, buoyed by strong corporate updates. The STOXX 600 index hit 519.42 points, up 1.5 per cent this month.

ASML surged 6 per cent after news that the Dutch chip equipment manufacturer would be exempt from new US rules on foreign chip exports to China.

The tech sector advanced 2.7 per cent, and Airbus shares rose 4 per cent following its second-quarter results. The CAC 40 Index increased by 1 per cent. French inflation for July hit 2.6 per cent, slightly above forecasts, with eurozone inflation data set for release later today.

Markets are anticipating further rate cuts from the European Central Bank (ECB), with a 65 per cent chance of a September cut.

The Federal Reserve’s upcoming policy meeting is expected to lay the groundwork for a potential September rate cut. Meanwhile, the Bank of England will also review British borrowing costs on Thursday.

HSBC Holdings saw a nearly 3.4 per cent rise after announcing a $3 billion share buyback, while Wolters Kluwer fell 4.5 per cent due to weaker first-half results. GSK dropped 1.8 per cent after missing vaccine sales targets in the second quarter.