(Reuters) – European shares edged higher on Tuesday as investors digested fast-changing U.S. tariff plans, while LVMH slumped after disappointing first-quarter revenue from the world’s largest luxury group underscored the damage caused by the trade war.
The pan-European STOXX 600 ticked up 0.6%, as of 0706 GMT, with most regional indexes trading higher barring France, which fell 0.2%, weighed down by LVMH’s 7.1% decline.
The company said shoppers in the United States cut spending on beauty products and drinks, while sales in China stayed weak during the quarter.
Peers including Cartier owner Richemont, Gucci parent Kering and Moncler fell between 2% and 2.8%.
But stock indexes in Germany, Spain, and the UK rose between 0.5% and 0.9%.
The auto and parts index rose 2.5%, leading gains among sectors, after U.S. President Donald Trump said he was considering a modification to the 25% tariffs imposed on foreign auto and auto parts imports from Mexico, Canada and other countries.
Investors now await the European Central Bank’s policy meeting on Thursday, with markets widely anticipating a 25-basis-point rate cut.
BE Semiconductor Industries (BESI) jumped 7.1% after U.S.-based computer chip equipment supplier Applied Materials bought a 9% stake in the Dutch semiconductor advanced packaging firm.
Ericsson rose 6.9% after the telecoms equipment maker reported much better-than-expected first-quarter core earnings.
(Reporting by Sukriti Gupta; Editing by Rashmi Aich)
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