European stocks stabilize with focus on the quarterly reports

European stocks stabilized on Wednesday, hovering near their lowest levels in more than a month, with the spotlight on the quarterly earnings reports of companies such as (ASML), (LVMH), and (Adidas (ETR:ADSGN)). At a time when investors are monitoring developments in the Middle East.

The European STOXX 600 index stabilized at 0717 GMT after recording its worst day in nine months in the previous session due to fears of escalating geopolitical tension.

The first quarter earnings reports will help assess the situation of companies in Europe against the backdrop of high interest rates. According to data from the London Stock Exchange Group, total profits are expected to decrease by 12.1 percent from the previous year.

Among the market’s biggest movers is ASML stock, which fell 4.8 percent, leading the technology sector to decline 1.8 percent after the Dutch company announced new bookings that were less than expected in its first-quarter earnings report.

On the other hand, LVMH shares rose 2 percent and helped limit the losses of the benchmark index after quarterly sales of the world’s largest luxury goods group rose 3 percent, which reassured some investors concerned about the sector’s prospects, especially in China.

Adidas shares jumped 5.4 percent as the giant German sportswear company raised its expectations for 2024 after announcing better-than-expected preliminary results for the first quarter.