Europe stocks set for mixed open ahead of Fed decision; ASML beats estimates as tech jitters ease

Europe stocks set for mixed open ahead of Fed decision; ASML beats estimates as tech jitters ease


Critical chip firm ASML posts quarterly bookings surge on heated AI demand

Dutch semiconductor giant ASML on Wednesday reported a big jump in fourth-quarter net bookings, suggesting strong demand for its advanced chipmaking tools even as DeepSeek’s low-cost model raises concerns over AI spending.

Here’s how ASML did versus LSEG consensus estimates for the fourth quarter:

  • Net sales: 9.26 billion euros versus 9.07 billion euros expected.
  • Net profit: 2.69 billion euros versus 2.64 billion euros expected.

Read the full story here.

— Ryan Browne

Broad indexes would suffer in 2025 if tech falters, but average stock hold up, Capital Economics says

Broad stock market indexes would suffer in 2025 if Big Tech leaders continue to falter but the average stock is likely to “hold up well,” according to Capital Economics senior markets economist James Reilly.

Although the S&P 500 Information Technology Index slid 5.5% Monday, its largest one-day decline since 2020, “the losses were largely confined to firms that had been expected to play a key role in facilitating AI, including semiconductor firms and utilities firms powering data centers,” London-based Capital Economics said, noting the S&P 500 only fell 1.5% and roughly 70% of companies in the index rose.

One possibility is that investors will start to favor more of the users of artificial intelligence and fewer of the “enablers,” which may have already begun before Monday, Reilly wrote. “In this scenario, the S&P 500 could rally further even as sentiment towards these prior favorites cooled. Indeed, something similar happened during the dotcom bubble — there was a rotation within the I.T. sector (from the largest firms) around 1999/2000 that didn’t undermine the S&P 500 index.”

Strangely, the large share of the market accounted for by the 10 biggest stocks offers some hope. “That might mean that the losses as these gains unwound would be similarly concentrated, affording plenty of scope for the average firm in the S&P 500 to do well if the economic backdrop stayed positive, as we expect,” Reilly noted.

— Scott Schnipper

European markets: Here are the opening calls

European markets are expected to open in mixed territory Wednesday.

The U.K.’s FTSE 100 index is expected to open 1 point higher at 8,538, Germany’s DAX up 46 points at 21,490, France’s CAC down 16 points at 7,897 and Italy’s FTSE MIB up 74 points at 36,406, according to data from IG.

Earnings come from ASML, Volvo, WH Smith and AkzoNobel and Sweden’s Riksbank publishes its latest monetary policy decision later this morning.

— Holly Ellyatt



Source

China’s tech talent are making big strides — they’re creating apps for the world
World

China’s tech talent are making big strides — they’re creating apps for the world

San Francisco-based AI design app Lovart officially launched Wednesday, with North American users in focus. Lovart BEIJING — Chinese developers are powering some of the latest artificial intelligence tools aimed at a global market. Melvin Chen moved to San Francisco from China to co-found AI design startup Lovart, which officially launched Wednesday — after claiming […]

Read More
Germany’s auto giants rally as U.S.-Japan trade deal raises hopes of a tariff breakthrough
World

Germany’s auto giants rally as U.S.-Japan trade deal raises hopes of a tariff breakthrough

Vehicles are assembled on a line at the BMW plant in Leipzig. Picture Alliance | Picture Alliance | Getty Images Shares of Europe’s top carmakers jumped on Wednesday after the U.S. and Japan’s blockbuster trade agreement raised hopes of a tariff breakthrough for other major exporters. In a post on social media platform Truth Social, […]

Read More
Dutch semiconductor giant ASMI drops 9% after ‘lumpy’ order intake
World

Dutch semiconductor giant ASMI drops 9% after ‘lumpy’ order intake

ASMI shares sell off after ‘lumpy’ order intake Stock Chart IconStock chart icon ASMI share price Shares of Dutch semiconductor equipment manufacturer ASM International were down 10% by 8:45 a.m. London time (3:45 a.m. ET). The company reported its second-quarter results after the close on Tuesday, with quarterly bookings coming in at a lower-than-expected 702.5 […]

Read More