Investing.com - European stock markets traded in a mixed fashion Wednesday, with investors digesting a series of major corporate results ahead of the conclusion of the latest Federal Reserve policy-setting meeting.
At 06:55 ET (11:55 GMT), the DAX index in Germany gained 0.8%, the FTSE 100 in the UK rose 0.4%, while the CAC 40 in France slipped 0.2%.
ASML impresses, LVMH slumps
Investors have been buoyed Wednesday by strong results from Dutch semiconductor giant ASML (AS:ASML), helping sentiment following the global tech sell-off earlier in the week after the successful rollout of Chinese startup DeepSeek’s R1 reasoning model.
ASML stock soared almost 9% after the biggest supplier of computer chip-making equipment posted much better than expected demand for its most advanced tools in the fourth quarter, even as DeepSeek’s low-cost model raises concerns over AI spending.
Elsewhere, LVMH (EPA:LVMH) stock fell 5%, dragging the French market lower, as sales growth posted by the luxury goods group failed to impress, with investors hoping for stronger signs of rebound from the sector bellwether following a string of strong results from rivals.
Remy Cointreau (EPA:RCOP) stock fell 5% after the French spirits producer issued its third warning in just four months, signaling a continued slowdown in its business, given a lack of visibility on the timing of a recovery in demand in the United States and worsening market conditions in China.
Akzo Nobel (AS:AKZO) stock fell 5% after the Dulux paints maker disappointed with its forecast for core earnings growth for 2025, not expecting a significant market rebound during the year.
AB Volvo (OTC:VLVLY) stock rose over 5% after the Swedish truckmaker reported a larger drop than expected in fourth-quarter operating profit, but raised its dividend payout.
Fed meeting set to conclude
On a macro note, the Federal Reserve concludes its two-day policy meeting later Wednesday, with the US central bank expected to keep interest rates unchanged as inflation remains above the bank’s 2% medium-term target.
This meeting comes on the heels of President Donald Trump's virtual address to the World Economic Forum in Davos earlier this month where he advocated for immediate rate cuts.
The European Central Bank also concludes its latest policy-setting gathering this week, and is expected on Thursday to slash rates by a quarter of a percentage point, adding to last year’s four cuts to address the overall weak growth.
Data released earlier Wednesday indicated that German consumer sentiment is set to dip heading into February due to growing pessimism among households about the economy.
The consumer sentiment index, published by GfK and the Nuremberg Institute for Market Decisions, unexpectedly fell to -22.4 points from a slightly revised -21.4 points the month before.
Crude slips on increased US stockpiles
Oil prices fell Wednesday, after an increase in US crude stockpiles weighed on prices, adding to global growth concerns if US tariffs go ahead.
By 06:55 ET, the US crude futures (WTI) dropped 0.7% to $73.22 a barrel, while the Brent contract fell 0.7% to $75.93 a barrel.
US crude oil inventories grew by 2.86 million barrels last week, according to data from the industry body American Petroleum Institute, after nine straight weeks of draws, as cold weather pushed up demand for heating, while travel demand also increased during the year-end holidays.
The Energy Information Administration, the statistical arm of the US Department of Energy, is due to release its weekly report later in the session.
Oil benchmarks fell to multi-week lows early this week, weighed by concerns of increased US production, the Trump administration’s plans to impose trade tariffs on major economies, as well as weak economic data from China.