A man passes a Louis Vuitton store in Macau, China, on Friday, Dec. 10, 2010.
This is CNBC's live blog covering European markets.
European markets traded lower Wednesday as global market sentiment took a turn for the worse.
The pan-European Stoxx 600 index was down 0.3% by mid-day with the majority of sectors in negative territory.
The FTSE 100 was an outlier among major regional bourses, up 0.6% after the latest U.K. data showed the inflation rate dropped sharply to 1.7% in September, according to the Office for National Statistics. The steep fall from the 2.2% print seen in August adds to expectations that the Bank of England will cut rates in November.
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Looking at individual stocks, shares of LVMH dropped 6.3% at the open Wednesday, making it one of the worst performers on the Stoxx 600, after the luxury group reported a 3% drop in third-quarter sales. The best performer was British hotel group Whitbread, up 3.7%, after it raised its interim dividend and announced a £100 million ($129.95 million) share buyback program.
The lower open seen for Europe's major bourses follows declines on Wall Street Tuesday and comes as most Asia-Pacific markets traded lower overnight, with Japan's Nikkei leading losses.
U.S. stock futures were calm Tuesday evening as Wall Street looked to see whether equities can be rebound to record highs this week; the S&P 500 and Dow hit all-time highs Monday. The earnings season continues, with Morgan Stanley due to report later today.
Money Report
Shares of ASML will be watched closely Wednesday after the Dutch chip firm published financial results a day early, issuing disappointing sales forecasts.
Chip stocks were the biggest culprits in the Nasdaq 100’s decline Tuesday
The Nasdaq 100 tumbled 1.37% on Tuesday, and semiconductors were some of the biggest contributors to the index's slide.
Nine out of the top 10 stocks with the most negative point impact on the Nasdaq 100 were chip names. Nvidia's 4.7% drop accounted for nearly 75 points on the index. Broadcom came in second place, with a roughly 3.5% loss and a 37.37-point impact. Applied Materials rounded out the top three: Shares fell 10.7%, accounting for more than 22 points on the Nasdaq 100.
KLA Corp, Advanced Micro Devices, ASML, Lam Research, Texas Instruments and Analog Devices also played key parts in the index's loss.
—Darla Mercado, Gina Francolla
Bank of America cuts price target on ASML Holding after 'sobering update'
A disappointing 2025 guidance cut from ASML Holding is leading Bank of America to update its price target on the semiconductor equipment company.
Analyst Didier Scemama trimmed his target on U.S.-listed share to $939 from $1149, reflecting 29% from Tuesday's close. The stock fell more than 4% before the bell, and looked poised to build on a 3.5% year-to-date loss.
Shares plunged 16% Tuesday after ASML issued a weaker-than-expected sales forecast in a day-early third-quarter earnings release. The firm cites a "more gradual" recovery in segments beyond AI such as China.
"Multiple pushouts lead to big reset for 2025," Scemama wrote, adding that attention now turns to an anticipated recovery in 2026 with 20% revenue growth.
He referred to the report as a "sobering update," adjusting EPS and revenue estimates downward for 2025 and 2026.
— Samantha Subin
Japan's Nikkei leads declines in Asia-Pacific markets as investors await key China briefing
SINGAPORE — Asia-Pacific markets traded lower on Wednesday, as investors await a high-level press briefing by China's housing authorities on Thursday.
Mainland China's CSI 300 slipped 0.63% to close at 3,831.59. Hong Kong's Hang Seng index inched 0.3% higher during a choppy session.
Australia's S&P/ASX 200 dropped 0.41% to 8,284.7. Japan's Nikkei 225 fell 1.83% to close at 39,180.3.
The Taiwan Weighted index lost 1.21% to finish at 23,010.98, dragged down by technology sector.
South Korea's Kospi fell 0.88% end at 2,610.36 while the small-cap Kosdaq dropped 1.04% to 765.79.
— Anniek Bao
European chip stocks fall on ASML sales warning
European chip stocks fell on Wednesday, after Dutch semiconductor equipment maker ASML posted disappointing sales forecasts.
Shares of ASML fell for a second day Wednesday, dropping 4%. The company's stock dropped 16% Tuesday, losing 49.2 billion euros ($53.6 billion) from its market capitalization in a single day, according to CNBC calculations.
ASML's decline also dragged other European semiconductor firms in the red on Wednesday. German chipmaker Infineon fell 0.3%. French semiconductor materials manufacturer Soitec was down 0.1%.
Read more here: Global chip stocks fall on ASML’s disappointing outlook, possible U.S. export cap
— Ryan Browne
Luxury stocks fall after LVMH sales decline
European luxury stocks were among the pan-European Stoxx 600 index's worst performers Wednesday after LVMH saw a drop in third quarter sales.
While the owner of Louis Vuitton and Moët Hennessy and a range of other high-end brands saw its share price drop more than 6% this morning, rival French luxury group and Gucci-owner Kering also saw its stock decline 1.5%.
French luxury house Hermes shares were down 1.3% Wednesday while British competitor Burberry's stock was also down 1.3%, with luxury goods group Richemont down 1.1%. Italian luxury fashion brand Moncler shares were 1.5% lower.
European luxury brands have been hit by slowing demand in the Chinese consumer market, a source of burgeoning growth in recent years.
— Holly Ellyatt
Stellantis stock slips as shipments decline
Shares of carmaker Stellantis were down 0.6% Wednesday after the automaker said it expects a 20% year-on-year drop in third-quarter consolidated vehicle shipments.
The group, which comprises the Jeep, Ram, Dodge, Maserati and Chrysler brands, said it estimated global shipments to amount to 1.15 million vehicles in the third quarter, down from 1.43 million in the same period of 2023, representing a 20% decline, according to a statement out on Wednesday.
Stellantis issued a profit warning in late September on the back of what it described as deteriorating "global industry dynamics" and bolstered competition from China.
Read more: Stellantis is struggling. Here's why
— Holly Ellyatt
Adidas shares drop despite third-quarter guidance boost
Adidas shares shed 4% by 8:18 a.m. London time, even after Europe's largest sportswear manufacturer on Tuesday raised its full-year profit and sales guidance on the back of better-than-expected third-quarter earnings.
Adidas now expects currency-neutral revenues will jump by 10% this year, compared with a high single-digit rate forecast previously. It also now anticipates its operating profit will reach around 1.2 billion euros ($1.31 billion) this year, versus 1 billion euros prior.
The company reported 10% year-on-year growth in third-quarter revenues in currency-neutral terms, flagging a 2-percentage-point hike in its gross margin to 51.3% over the period.
The brand has been on the rebound since the collapse of its partnership with American rapper Ye, ending their popular Yeezy collaboration line. The company on Tuesday said it assumes it will be able to sell its remaining Yeezy inventory "on average at cost," boosting sales by 50 million euros.
— Ruxandra Iordache
LVMH shares slide 6.3% at the open after third-quarter earnings disappoint
Shares of LVMH dropped 6.3% at the open Wednesday after the luxury group reported a 3% drop in third-quarter sales.
LVMH on Tuesday announced that it had generated 19.08 billion euros ($20.8 billion) in revenue for the three months ending in September, a 3% fall in terms of organic growth from the same quarter last year.
In an earnings statement, it said "in the third quarter, the slight decline in revenue mainly arose from lower growth seen in Japan, essentially due to the stronger yen."
It added that "in an uncertain economic and geopolitical environment, the Group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands."
In addition to Louis Vuitton and Moët Hennessy, LVMH owns brands including Christian Dior, Bulgari, Givenchy and Fendi.
— Holly Ellyatt
ASML stock watched after disappointing sales forecasts
Shares of ASML will be watched closely Wednesday after the Dutch chip firm published financial results a day early, issuing disappointing sales forecasts.
ASML, which is based in Veldhoven, Netherlands, said it expects net sales for 2025 to come in between 30 billion euros and 35 billion euros ($32.7 billion and $38.1 billion), at the lower half of the range it had previously provided.
Net bookings for the September quarter were 2.6 billion euros ($2.83 billion), the company said — well below the 5.6 billion euro LSEG consensus estimate. Net sales, however, beat expectations coming in at 7.5 billion euros.
Read more: Chip company ASML shares plunge 16% after warning of weaker China sales in early release
— Ryan Browne
U.K. inflation falls sharply to 1.7% in September
Inflation in the U.K. dropped sharply to 1.7% in September, the Office for National Statistics said Wednesday.
Economists polled by Reuters had expected the headline rate to come in at a higher 1.9% for the month, in the first dip of the print below the Bank of England's 2% target since April 2021.
Inflation has been hovering around that level for the last four months, and came in at 2.2% in August.
— Jenni Reid
CNBC Pro: Citi names 'underappreciated' AI stock as 'top pick' – giving it a 25% upside
Citi has named a little-known company as one of its its new "Top Pick," citing an "underappreciated" artificial intelligence story and attractive valuation.
The tech firm's stock price has surged by over 50% year-to-date, outperforming the broader iShares Expanded Tech-Software Sector ETF, which is up nearly 14% this year.
The Wall Street bank also said that the firm reported a "strong" set of financial results for the second quarter.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Chip stocks were the biggest culprits in the Nasdaq 100’s decline Tuesday
The Nasdaq 100 tumbled 1.37% on Tuesday, and semiconductors were some of the biggest contributors to the index's slide.
Nine out of the top 10 stocks with the most negative point impact on the Nasdaq 100 were chip names. Nvidia's 4.7% drop accounted for nearly 75 points on the index. Broadcom came in second place, with a roughly 3.5% loss and a 37.37-point impact. Applied Materials rounded out the top three: Shares fell 10.7%, accounting for more than 22 points on the Nasdaq 100.
KLA Corp, Advanced Micro Devices, ASML, Lam Research, Texas Instruments and Analog Devices also played key parts in the index's loss.
—Darla Mercado, Gina Francolla
CNBC Pro: Rates won't be cut at an aggressive pace — here's how to position, according to strategists
U.S. interest rate cuts are unlikely to move at an aggressive pace, say market watchers.
The Fed kicked off its easing cycle with a jumbo 50 basis-point rate cut in September — but subsequent ones will be milder, they said.
They explain why, and say how investors should position.
CNBC Pro subscribers can read more here.
— Weizhen Tan
European markets: Here are the opening calls
European markets are expected to open lower Wednesday.
The U.K.'s FTSE 100 index is expected to open 6 points lower at 8,249, Germany's DAX down 35 points at 19,482, France's CAC down 59 points at 7,469 and Italy's FTSE MIB down 137 points at 34,246, according to data from IG.
U.K. and Italian inflation data is released today.
Correction: This post has been updated to reflect the timing of ASML's earnings release.
— Holly Ellyatt
