STOCK EXCHANGE: Two-part opening on European stock exchanges – French fashion giant Hermès plunges, ASML raises guidelines

On Wednesday, European stock markets melted the previous days’ rise.

After the opening, Germany’s Dax was up 0.1 percent, Britain’s FTSE 100 was up 0.2 percent, and France’s CAC 40 was down 0.6 percent.

The Euro Stoxx 50, which lists Europe’s largest companies, was down 0.3 percent.

By far the largest listed company in Europe, manufacturing lithography equipment used in the semiconductor industry ASML reports its results for the beginning of the year in the morning. Turnover was the expected 8.77 billion euros, and at the same time the company raised its guidance for the entire year 2026. ASML expects turnover to settle at 36–40 billion euros this year.

The company’s CEO Christophe Fouquetin according to the production will not be enough to meet the demand in the near future, as the investments required by artificial intelligence models encourage hugely advanced chips.

The only challenge for the company is China. The United States is planning legislation that would further limit sales of the company’s more advanced lithography equipment to China.

ASML’s share fell significantly in the pre-market, but was already up 0.2 percent after the stock market opened.

A French fashion house Hermesin the share was down more than 13 percent after the company announced that sales had increased by 5.6 percent in the beginning of the year. Analysts expected stronger growth. In the Middle East market, which is important to the company, sales fell by 5.9 percent as a result of the war.

Another major fashion company LVMH will report its results on Monday. It also said that the situation in the Middle East is hurting sales. At the beginning of the year, a quarter of the stock has already melted, as consumers’ willingness to buy is being tested.

Even in Europe, the peace talks promised by Iran and the United States have increased investors’ optimism in recent weeks. The price of crude oil, which has worried the world economy, has been on a downward trend in recent days. On the other hand, investors suspect that the European Central Bank will still be under pressure to raise interest rates this year, as the effects of the energy crisis will affect consumer prices in the coming months.

The United States has declared an embargo on Iranian shipping and warned that any ships leaving the Persian Gulf from Iranian ports or coastal waters would be stopped.

On Wednesday, the euro area will receive statistics on the development of industrial production in February.