European shares edge up after solid ASML results, healthcare gains

European shares notched slim gains on Wednesday after robust earnings from ASML reassured investors concerned about AI demand, while healthcare stocks hit their highest in over five ‌weeks. The pan-European STOXX 600 index gained 0.43% to 637.75 points. The healthcare index was the biggest gainer on the benchmark, rising 2.3% to hit its highest since September 7.

Additionally, shares of ASML rose 1.2% after it said customers were already looking to place orders for its advanced chipmaking tools for ‌2029 and 2030, illustrating that demand remains sturdy. "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.

Battered by weeks of elevated oil prices and government bond yields, European investors are pinning their hopes on corporate earnings to breathe life into equities. But results have been uneven so far. Earlier this week, luxury bellwether ⁠LVMH reported ​weaker-than-expected third-quarter sales as a sharp deterioration ⁠in Chinese consumer mood hit demand for its flagship brands.

"We expect a real dichotomy in earnings," said Michael Field, chief equity market strategist for EMEA at Morningstar, adding that ⁠firms exposed to higher energy prices and weak consumer sentiment could struggle. Oil prices seesawed but Brent crude futures were above $100 a barrel, keeping investors on edge. ​Inflation fears stemming from the Middle East conflict have reinforced 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. Mining stocks led sectoral losses on Wednesday, with Fresnillo the biggest ⁠laggard ​following a 4.6% decline after JPMorgan lowered its price target on the stock.

Among other movers, Orsted dropped 3.9% after Bloomberg News reported the US would re-evaluate the permit for its wind farm near Rhode Island. British IT firm Softcat fell about 11% 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. GSK rose 4.6% following ⁠a plan to cut as many as 1,217 jobs in Belgium.

Markets also parsed the US inflation data for September, which showed that consumer prices advanced more than expected, reviving bets on an interest rate hike ‌by the Federal Reserve later ‌this month.