European Markets Brace as ASML Soars and LVMH Dips Amid Earnings

European shares hit pause after back-to-back gains while investors assess corporate earnings and commentary. ASML's record performance stands out as tech stocks lead the rise. Meanwhile, Volvo sees smaller-than-expected losses, while LVMH faces a drop amid cautious outlook. Eyes now turn to the U.S. Federal Reserve's policy announcement.

European shares hesitated on Wednesday following two days of gains, as investors sifted through corporate earnings updates and executive insights. Notably, ASML achieved a record high, boosting tech stocks by 2.7%, which became the session's most significant gainers.

Despite geopolitical and trade tensions overshadowing the macroeconomic environment, investors found solace in earnings reports. ASML, the world's largest supplier of computer chip equipment, announced better-than-expected fourth-quarter bookings, fueled by robust AI demand, propelling its shares up by 6.9%.

In other movements, Swedish truck manufacturer Volvo Group saw its stock rise 2.7%, thanks to a smaller-than-feared decline in fourth-quarter operating profit. In contrast, LVMH experienced a 6.1% drop following cautionary guidance from CEO Bernard Arnault. All eyes are now on the impending U.S. Federal Reserve's policy decision and potential threats to its autonomy.

(With inputs from agencies.)