European equities took a breather following a two-day advance as investors sifted through a stream of corporate earnings and executive commentary. The pan-European STOXX 600 index was flat as of 0804 GMT, reflecting a pause in the recent rally while market participants parsed company-level signals.
Technology names led the gains in early trade, rising 2.7% and providing the main upside for the benchmark. A standout in the sector was ASML, the world’s largest supplier of computer chip equipment, which reported stronger-than-expected bookings for the fourth quarter. Management highlighted resilient demand related to artificial intelligence, and the stock climbed 6.9% as it reached a record high.
Outside of semiconductors and equipment suppliers, Swedish commercial vehicle maker Volvo Group saw its shares rise 2.7% after reporting a fourth-quarter operating profit that declined less than investors had feared. That outcome helped underpin demand for industrial and transport-related stocks during the session.
Not all company updates were received positively. Luxury group LVMH saw its shares drop 6.1% after comments from Chief Executive Bernard Arnault expressing caution about the year ahead. The remarks weighed on the luxury sector and contributed to selective weakness across consumer discretionary names.
Beyond corporate news, market participants are awaiting the U.S. Federal Reserve’s policy decision later in the day. The central bank is widely expected to hold interest rates steady, but market focus is likely to center on commentary about threats to its independence, a theme investors say could influence sentiment.
Overall, the trading day illustrated a market environment where company results and management tone are driving sector-level divergence - with tech and industrial names seeing support while luxury and discretionary stocks showed vulnerability. The STOXX 600’s flat reading as of 0804 GMT captured that mixed backdrop as investors position ahead of the Fed announcement.