European shares dragged down by tech, luxury stocks

European shares got off to a weak start on Wednesday ahead of the European Central Bank’s monetary policy decision, weighed down by tech and luxury stocks after disappointing results from sector heavyweights ASML and LVMH.

The pan-European STOXX 600 index was down 0.3% by 0702 GMT.

ASML, the world’s largest chipmaking equipment maker, fell 4%, dragging the technology sub-index down 1.2% to a one-month low, according to Reuters.

The luxury sector was also unsettled, with France’s LVMH plunging 7% after reporting lower third-quarter sales and saying customer confidence in China had fallen to levels similar to those seen during the Covid-19 pandemic.

In the same sector, shares of Kering, owner of Gucci, Hermes, maker of Birkin bags, and Richemont, owner of Cartier, fell between 2.1% and 5.3%.