ASM International NV

European stock markets closed lower on Wednesday, with the STOXX 600 index falling 0.29% to 645.01 points, snapping a three-day winning streak. The luxury goods sector tumbled 2.4%, the steepest decline among industry groups, after mixed earnings from French luxury companies. Kering shares surged nearly 17% after Gucci sales fell less than expected, while Hermes shares slumped 11% amid no signs of recovery in the Chinese market. The technology sector fell 0.4%, extending losses for a third straight day, pressured by ASM International which dropped 4.8% despite a positive earnings outlook. The energy sector gained 2.2%, tracking Brent crude oil prices which jumped nearly 8% to breach 90 US dollars per barrel, as tensions in the Middle East flared up again. Investors are also watching the Federal Reserve meeting outcome and earnings from US tech giants such as Microsoft and Meta, which will report after the US stock market closes.

Global tech stocks plunged after China achieved a breakthrough in developing deep ultraviolet lithography machines critical to AI chip manufacturing. South Korea’s Kospi index fell nearly 11 percent overnight, triggering a brief trading halt, while Japan’s Nikkei and Taiwan’s Taiex each sank more than 4 percent. The sell-off was sparked by reports that Chinese state-owned Shanghai Yuliangsheng has begun mass-producing the machinery, with leading Chinese chipmakers expected to receive first deliveries later this year. ASML shares dropped more than 8 percent, ASM International fell over 7 percent, and BE Semiconductor declined nearly 10 percent. Samsung and SK Hynix each plunged more than 12 percent, leaving the Kospi on track for its worst month since 1997.

Wall Street ended mixed, with the Dow Jones Industrial Average gaining 262.83 points to close at 52,210.08, while the Nasdaq fell 43.74 points. Investors are awaiting earnings from major tech companies such as Microsoft, Amazon, Meta, and Apple this week, amid concerns that the AI bubble may be starting to deflate. Brent crude oil prices tumbled 8.7% to 88.36 dollars per barrel after the US suspended strike operations against Iran, dragging energy stocks lower, led by Occidental Petroleum down 4.1% and Exxon Mobil down 1.4%. European markets closed flat, with the STOXX 600 edging up just 0.02%, as ASML shares plunged 8.4% following reports that China has developed its own DUV lithography chipmaking tools, weighing on tech peers ASM International and BE Semiconductor.

European stock markets closed only slightly higher on Monday, with the STOXX 600 index edging up 0.02% to 644.62 points, as falling technology stocks capped market gains despite easing tensions in the Middle East and a sharp drop in oil prices. Energy stocks fell 2%, making them the worst-performing sector in the STOXX 600, after West Texas Intermediate crude for September delivery dropped 7.5% to settle at 82.61 dollars a barrel and Brent crude fell 8.7% to 88.36 dollars a barrel, amid hopes for peace talks between the United States and Iran. The European technology index declined 1.7%, led by ASML, which tumbled 8.4% following reports that China has begun producing domestically developed deep ultraviolet chipmaking equipment, a technology long dominated by ASML. ASM International dropped 7.1% and BE Semiconductor plunged 9.7%. Investors are watching earnings reports from major US technology companies this week and the Federal Reserve's monetary policy meeting, with the CME Group's FedWatch Tool indicating a 62% probability that the Fed will hold interest rates at 3.50% to 3.75% at its July 28-29 meeting.