FX.co ★ Luxury Stocks Lift European Markets Higher

European stocks experienced an upswing on Wednesday as the STOXX 50 increased by 1.2% and the STOXX 600 rose by 0.7%, recovering from previous session losses. This positive momentum was driven by a new wave of corporate earnings reports. The luxury sector emerged as a standout performer, significantly bolstered by a 12% jump in LVMH shares upon announcing revenues that surpassed expectations. Other luxury brands such as Kering (+8.3%), Burberry (+6.6%), Hermès (+6.3%), Moncler (+6.8%), and Richemont (+5.4%) also witnessed strong gains. Meanwhile, ASML Holding saw its shares climb by 2.6% after the company reported earnings that exceeded forecasts, although revenues were slightly down. ASML conveyed confidence in maintaining its 2026 net sales at or above 2025 levels, noting "positive news" involving AI-related commitments, which alleviated some persistent uncertainties. Additionally, French stocks led the charge following Prime Minister Sébastien Lecornu's announcement to postpone a controversial pension reform until beyond the 2027 election, a significant aspect of President Emmanuel Macron’s policy agenda.