European Stocks Stabilize Supported by Luxury Goods Sector Results

European stock markets showed calm on Tuesday, with gains in the luxury and consumer goods sectors balancing out a global sell-off in technology shares.

The Stoxx 600 index held steady at 645.32 points as of 0703 GMT.

Technology stocks led the losses, dropping 0.8%, continuing their decline after a nearly 2% fall in the previous session.

Investor sentiment was affected by a report published on Monday by The Information, stating that China has begun producing lithography machines using locally developed deep ultraviolet technology, a critical process in semiconductor manufacturing long dominated by the Dutch equipment maker ASML.

The report triggered a sell-off in semiconductor shares. U.S. chip manufacturers closed lower overnight, while their Asian counterparts declined on Tuesday. ASML’s stock fell 2% at the start of European trading on Tuesday.

Contrary to the overall subdued mood, the personal and household goods sector rose 1.8%.

Unilever’s shares surged 5.3% after the consumer goods group exceeded second-quarter sales growth expectations, supported by higher sales volumes and prices.

Shares of LVMH increased 2.5% following the luxury goods group’s announcement of a 3% rise in second-quarter sales, driven by strong demand from American shoppers.

Mercedes-Benz shares climbed 3.3% after the German luxury carmaker reported a 22% increase in second-quarter operating profits but issued a warning about weakness in its core automotive business.

Investors are also awaiting earnings reports from major U.S. technology companies this week, searching for signs of continued AI-driven market recovery. The U.S. Federal Reserve is scheduled to announce its monetary policy decision on Wednesday.