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European shares buoyed by tech sector; luxury stocks decline

European stock markets traded up on Wednesday, as investors focused on Federal Reserve's monetary policy decision due to be posted, where it is expected a repeated interest rate cut. 

luxuty stocks dropPhoto: Pixabay

Meantime, the oil prices dipped after Saudi Arabia announced the dates of its overall oil output restoration after recent attack. 

Losses in luxury stocks widely affected European shares, which began session down on Wednesday, but tech shares jump managed to offset those losses, while investors remained wary of widely expected interest rate slash by the U.S. Fed.

Luxury goods group Richemont shares in Switzerland dropped by almost 5 percent on Wednesday, having an impact on the pan-European STOXX 600 index, while watch producer Swatch declined by 3.14 percent at 09.08 GMT after UBS’s bearish forecast.

Salvatore Ferragamo shares went down too by 2.29 percent, LVMH securities eased by 0.59 percent.

The pan-European index Stoxx 600 managed to gain 0.03 percent, at 389.45.

  • The UK’s FTSE 100 grew by 0.20 percent, to 7,334;

  • The Germany’s DAX began to rise by 0.04 percent, at 12,377;

  • The France CAC 40 and Spain’s Ibex increased both by 0.07 percent, at 5,619 and 9.010 respectively;

  • The Italy’s FTSE MIB occurred to be the growth-leader on Wednesday, being up by 0.43 percent, at 21,895 at 09.12 GMT.

The Fed’s policy statement is due to be released at 18.00 GMT, where it is expected to slash U.S. rates again, for the second time this year, despite the fact the policymakers divided in connection to whether a cut is needed.

EDF shares jumped by 3.47 percent in France after energy generating company said there was no need to block any of its nuclear reactors after the problems with weldings were already identified.

Apple component suppliers AMS (+2.67), STMicroelectronics (+2.22), and Infineon Technologie (+0.67) showed the strongest gains on Europe’s tech subsector, following significant pre-orders for the iteration of iPhone. Tech shares added rose 0.4 percent.

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    Luxury shares are dropping, in my opinion it is the significant demonstration of economic slowdown, even rich people tighten their belts.

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