ASML earnings boost tech stocks, lift European shares

European shares rose on Wednesday, recovering from modest losses in the previous session, as upbeat earnings from ASML boosted technology stocks and lifted market sentiment. ASML, ‌the world's biggest supplier of chipmaking equipment, rose 2.4% after saying that AI-driven demand for its chip-printing tools was so strong that it will not be able to fully meet customer demand in 2027 or 2028. The firm raised its full-year sales outlook and is looking to expand ‌capacity.

"There were concerns that the AI trade was running out of steam, but ASML has helped support the bullish argument that tech ‌stocks are still performing well, demand for chips remains strong, and infrastructure spending is likely to continue well into 2027," said Gordon Kerr, European macro strategist at KBRA. The pan-European STOXX 600 index gained 0.48% to 638.07 points by 0857 GMT, after pulling back from a one-week high on Tuesday.

The technology sector added 1.2%, rebounding from Tuesday's global ⁠chip selloff ​sparked by reports of advances ⁠by a Chinese chipmaker. The sector is the STOXX 600's best performer this year, riding a global semiconductor rally earlier in 2026, though Europe's lighter exposure to such stocks has ⁠limited broader gains.

The STOXX 600 is up about 7.8% this year, trailing the chip-heavy Nasdaq and South Korea's KOSPI, which have gained 17% and about 42%, respectively. Luxury ​stocks gained 0.9%, but remain down 24.5% this year. Results from bellwether LVMH on Monday raised fresh doubts about the sector's ⁠recovery from a three-year slump.

Insurers dipped 0.2%, leading sector wise declines. Keeping markets cautious, oil prices swung between gains and losses, with Brent still above $100 a barrel. Elevated energy prices stemming ⁠from ​the Middle East conflict have continued to stoke inflation fears, reinforcing expectations of tighter monetary policy.

Traders expect the European Central Bank to hold interest rates at its October meeting but see an 81% chance of a December hike, according to LSEG data. Among other movers, Orsted ⁠dropped 3.2% after Bloomberg News reported the US would re-evaluate the permit for its wind farm near Rhode Island.

British IT firm Softcat fell ⁠7% after flagging a slower growth ⁠outlook for fiscal 2027. Sweden's SEB dropped 5% after the country's bank regulator temporarily raised the lender's capital requirements over flaws in its internal risk models.

Investors also await US consumer price index data due later on ‌Wednesday for clues on ‌the Federal Reserve's policy path.