Traders work on the floor of the New York Stock Exchange during afternoon trading on Oct. 14, 2025 in New York City.
Michael M. Santiago | Getty Images
LONDON — European stocks rose during early trading Wednesday, with luxury brands driving gains, as the region’s markets rebounded after touching a two-week low in the previous trading session.
The pan-European Stoxx 600 was up by 0.8% at 8:55 a.m. in London (3:55 a.m. ET), with most sectors in positive territory.
France’s CAC 40 was up 2.5% — notching its biggest daily gain since April — with investors closely monitoring Prime Minister Sebastien Lecornu’s new government after he promised on Tuesday to suspend a controversial pension reform until after the 2027 election, one of the signature economic policies of President Emmanuel Macron.
The suspension of the reform was welcomed by the Socialists, who said they would support Lecornu’s government when confidence votes, called by opposition parties, are held on Thursday.
Meanwhile, Italy’s FTSE MIB trading 0.8% higher, Germany’s DAX gained 0.3% and the U.K.’s FTSE index was down 0.1%.
Europe’s luxury brands surged Wednesday morning, led by LVMH which jumped nearly 13%. Christian Dior, which owns a large stake in LVMH, gained 12.5%. Kering traded 6% higher, as Moncler and Burberry rose more than 7%. Overall, the Stoxx Europe Luxury 10 was up 6.2%.
The positive change in sentiment comes after regional stocks touched on two-week lows on Tuesday, amid the threat of a new trade dispute between the U.S. and China.
U.S. President Donald Trump threatened China last Friday with a fresh wave of tariff increases to “financially counter” new export controls that China imposed on rare earth minerals.
Then on Tuesday he criticized China for not buying soybeans, calling it an “an economically hostile act.” He also threatened “retribution” such as a cooking oil embargo.
Asia-Pacific markets traded higher overnight, while U.S. stock futures were little changed following a volatile session for stocks.
Investors will also be watching for news from the IMF and World Bank annual meetings in Washington.
The meetings bring together central bankers, ministers of finance and development, the private sector, civil society and academia to discuss issues of global concern, including the global economy, poverty eradication and economic development.