European stocks open higher supported by quarterly results

European markets opened higher on Friday, bolstered by positive quarterly results from luxury goods group LVMH and French liquor company Remy Cointreau. Traders were also evaluating the prospects of interest rate adjustments, a day after the European Central Bank (ECB) maintained its existing interest rates.

As of 0819 GMT, the European STOXX 600 index had risen by 0.4 percent.

LVMH shares surged by 8.2 percent following the announcement that the world’s largest luxury goods group had recorded a 10 percent increase in fourth-quarter sales, driven by robust demand, particularly from Chinese buyers. This contributed to a 3.0 percent increase in the personal and household goods index, leading sector-level gains.

Remy Cointreau also stood out as one of the top-performing stocks, climbing by 13.3 percent after the French alcoholic beverage maker reported a slightly smaller-than-expected decline in third-quarter sales.

The French CAC 40 index, which encompasses both LVMH and Remy Cointreau stocks, experienced gains of 1.3 percent, surpassing other regional stock exchanges.

In its decision on Thursday, the European Central Bank opted to maintain interest rates at a record level of four percent, reiterating its commitment to combating inflation as it approaches the time to consider easing borrowing costs. While the central bank steered clear of “premature” interest rate cuts, traders are now anticipating a cut of approximately 140 basis points this year, up from about 130 basis points the day before.