Live Markets: Before the bell: banks and luxury cushion Europe from chip rout
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BEFORE THE BELL: BANKS AND LUXURY CUSHION EUROPE FROM CHIP ROUT
European shares were poised for a softer open on Wednesday, with strong earnings and limited tech exposure helping regional benchmarks weather a global chip-stock selloff ahead of results from the Big Tech firms driving the AI spending boom.
Technology stocks remained under pressure after South Korea's SK Hynix 000660.KS slumped 16% despite posting record quarterly profit, extending a selloff in chipmakers across Asia and weighing on European heavyweight ASML ASML.AS.
Higher oil prices following fresh attacks in the Middle East and lingering uncertainty ahead of the Federal Reserve's policy decision added to investor caution.
Still, earnings provided support.
Deutsche Bank DBKGn.DE was set to gain after beating forecasts, driven by strength in its corporate and investment banking units, while announcing a further 500 million euro share buyback. Standard Chartered STAN.L and UBS UBSG.S also topped expectations on strong wealth management performance and unveiled fresh share buybacks.
Luxury stocks were in focus after Kering PRTP.PA reported signs of stabilisation at Gucci and beat profit forecasts, while Remy Cointreau RCOP.PA exceeded sales expectations.
Legrand LEGD.PA, Nexans NEXS.PA, BASF BASFn.DE and Bureau Veritas BVI.PA also posted stronger-than-expected results.
Among the laggards, Logitech LOGN.S fell after issuing a weaker-than-expected outlook linked to component shortages.
(Danilo Masoni)
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EARLIER ON LIVE MARKETS:
CHIP ROUT MOVES INTO PANIC TERRITORY CLICK HERE