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 (AS:) and LVMH.

The continent-wide 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 (EPA:), 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 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 (NYSE:) fell 2% after warning of a 20% drop in third-quarter consolidated shipments.

Shoemaker Adidas (OTC:) fell 3% after its third-quarter results.