Europe midday: Stocks mixed as markets pause after recent rally
European stocks were mixed on Wednesday, as investors paused for breath following the best daily performance in nearly a year.
The Europe Stoxx 600 Index was up 0.17% at 453.26, having surged 1.97% on Tuesday on the back of easing bond yields in the US, hopes of further stimulus in China.
Markets were higher in London and Milan, flat in Frankfurt but lower in Madrid and Paris, with the latter registering heavy losses on the back of weakness in the luxury sector.
In economic news on Wednesday, German inflation fell to its lowest level since the start of the war in Ukraine.
The annual change in the consumer price index stood at +4.5% in September, down from +6.1% in August and +6.2% in July. Energy prices rose just 1% year-on-year, slowing from the 8.3% growth seen the previous month.
Markets will now be closely watching the producer price index release in the US later on, along with the publication of the FOMC minutes after the closing bell. US consumer price inflation data is also due out on Thursday.
LVMH leads luxury stocks lower
LVMH dropped 6% after the luxury group said organic revenue growth had eased to 9% in the third quarter, well below the 11.2% growth expected by analysts. Sales in the wines and spirits division, in particular, plunged 14%, causing shares in fellow drinks company Pernod Ricard to fall.
"While luxury has been a strong sector lately, given that customers with high disposable incomes are relatively sheltered from cost-of-living pressures, results from LVMH, the first in the sector, appears to suggest that the blockbuster period for luxury is starting to fade," said Victoria Scholar, head of investment at Interactive Investor.
Others in the sector, such as Kering and Hermes, were also taking a hit in Paris.
On the other hand, Danish pharma giant Novo Nordisk rose strongly after calling an end to a trial of its Ozempic drug after early signs of success. The trial, studying Ozempic's treatment of kidney failure in diabetes patients, was supposed to continue for nearly a year longer.