European stocks open higher supported by quarterly results

European markets opened higher on Friday, supported by positive quarterly results from luxury goods group LVMH and French liquor company Remy Cointreau, while traders evaluated the possibilities of lowering interest rates, a day after the European Central Bank kept… Interest rates remain unchanged.

According to Reuters, by 0819 GMT, the European STOXX 600 index rose 0.4%.

LVMH shares jumped 8.2% after the world’s largest luxury goods group recorded a 10% increase in fourth-quarter sales, driven by strong demand, especially from Chinese buyers.

The stock raised the personal and household goods index 3.0 percent, leading increases at the sector level.

Remy Cointreau stock was also among the best-performing stocks, rising 13.3% after the French alcoholic beverage maker recorded a slightly smaller-than-expected decline in third-quarter sales.

The French CAC 40 index, which includes both stocks, rose to achieve gains of 1.3% and outperform other regional stock exchanges.

The European Central Bank kept interest rates at a record 4% on Thursday and reiterated its commitment to fighting inflation even as the time to start easing borrowing costs approaches.

Although the central bank backed away from “premature” interest rate cuts, traders now expect a cut of about 140 basis points this year, up from about 130 basis points the day before.