European Stocks Edge Up as ASML Lifts Sales Outlook Ahead of US Inflation Data

what happened

European stock markets closed slightly higher on Wednesday. According to dpa-AFX and RTTNews, investors welcomed strong results from Dutch chip equipment maker ASML and waited for US inflation data to gauge the Federal Reserve's policy path.

New York Fed President John Williams said on Tuesday that one more rate hike this year might be appropriate, but no further tightening would be needed in 2027. Fed Governor Christopher Waller said the climb in US Treasury yields to 24-year highs reflects stronger economic growth and AI investment, while inflation expectations remain well anchored.

Data from Destatis showed German wholesale prices rose 8.7 percent in September from 6.8 percent a month earlier, but the market barely reacted. A bigger increase than the September 2026 figure was last recorded in February 2023. The STOXX 600 rose 0.5 percent to 637.94 after a 0.1 percent drop on Tuesday. The DAX gained 0.4 percent, the CAC 40 added 0.5 percent and the FTSE 100 rose 0.4 percent. ASML shares climbed 2.2 percent after the company raised its full-year 2026 sales forecast.

Dustin Group rose about 1 percent after the Swedish IT reseller posted adjusted EBITA above expectations for the fourth quarter of fiscal 2025/26. Lonza Group gained 2 percent after setting new midterm targets and backing its annual outlook. Softcat fell 7 percent despite better-than-expected annual profit. Discoverie Group rose 2.3 percent, and Freenet advanced 1.4 percent after buying the remaining roughly 25 percent minority stake in Exaring AG (waipu.tv). Evotec jumped 7.2 percent as nine-month results beat market expectations and it reiterated its FY26 outlook.

why it matters

Two factors matter most for markets now: the likely path of Fed rates, as signaled by Williams and Waller, and the direction of US Treasury yields. ASML's report supported chip equipment stocks, but the broader European indexes made only modest gains, suggesting investors are holding back until the US inflation figures are released.

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