The STOXX 600 index declined 0.2%, retreating further from the more than two-week high reached early on Tuesday

Europe’s STOXX 600 settled lower on Wednesday, with tech and luxury stocks hurt by disappointing results from industry heavyweights ASML and LVMH, while caution prevailed ahead of the ECB’s policy decision.

The continent-wide STOXX 600 index declined 0.2%, retreating further from the more than two-week high reached early on Tuesday. The euro zone blue chip index closed at more than a three-week low.

ASML, the world’s biggest chipmaking equipment manufacturer, slipped another 5.1% to reach a 10-month low, dragging the tech index down 1.5% to a one-month low. Its weak 2025 sales forecast on Tuesday triggered its sharpest one-day decline in almost three decades.

Jochen Stanzl, chief market analyst at CMC Markets, said ASML’s disappointing results might be due to cost cuts by its customers such as Intel and that in a few months, fresh orders could lift the stock.

The luxury sector also faltered as France’s LVMH slid 3.7%, the stock’s biggest one-day drop in more than one month, after the company reported weaker third-quarter sales. The French CAC 40 index underperformed most major European bourses with a 0.4% decline.

Peers Gucci-owner Kering, Hermes and Richemont dropped between 0.8% and 1.3%. The wider luxury and personal and household goods indexes each tumbled more than 1.3%.

Both indexes have underperformed STOXX 600 so far this year. China-exposed companies have grappled with dwindling sales in the world’s second-largest economy, with sentiment getting a brief boost from the latest stimulus measures.

Spain’s benchmark closed at its highest since January 2010, but Germany’s DAX index slipped further by 0.1% from Tuesday’s record high.

The probability for the DAX to continue going up is higher because given the fact that there are a lot of export oriented companies in the DAX comparable to global U.S. companies, he added.

Market participants expect the European Central Bank to cut rates by another 25 bps on Thursday, which could boost stocks.

Travel and leisure stocks gained 1.6% to top sectoral charts, boosted by Whitbread’s 6% advance after the Premier Inn owner said bookings were picking up for the holiday season.