European Stock Markets Held, Pressure on Technology Stocks Offset by Issuer Performance
European stock markets moved within a narrow range on Tuesday (July 28th). The pan-European STOXX 600 index held at 645.32, as pressure on technology stocks was offset by gains in consumer goods, luxury goods, and automotive stocks, supported by strong corporate performance reports.
The technology sector was the main drag, falling 0.8%, extending its nearly 2% decline in the previous session. Sentiment worsened after reports emerged that China had begun domestically producing ultraviolet lithography machines, a key technology in the semiconductor industry previously dominated by ASML. ASML shares fell around 2% in early trading.
Meanwhile, the personal and household goods sector rose 1.8%. Unilever shares surged 5.3% after second-quarter sales growth beat expectations, while LVMH rose 2.5% thanks to 3% sales growth driven by US consumer demand. Mercedes-Benz also gained 3.3% after second-quarter operating profit rose 22%.
Investors are now awaiting the earnings reports of several major US technology companies to gauge the sustainability of the artificial intelligence-driven rally. Markets are also cautious ahead of the Federal Reserve's monetary policy decision on Wednesday, while falling oil prices have provided some support for European stock sentiment. (asd)
Source: Newsmaker.id
