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France's CAC 40 underperforms peers on luxury drag

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Adidas drops amid broader selloff despite third 2024

outlook

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Spain's IBEX closes at highest since January 2010

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ECB's interest rate decision due on Thursday

(Updated at 1600 GMT)

By Paolo Laudani, Ankika Biswas and Johann M Cherian

Oct 16 (Reuters) -

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

European Central Bank's policy decision.

The continent-wide STOXX 600 index fell 0.2%,

retreating further from the over two-week high hit 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, shed another 5.1% to hit a 10-month low, dragging

the tech index down 1.5% to a one-month low. Its weak

2025 sales forecast on Tuesday sparked its steepest one-day

decline in nearly 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 ( INTC ) and that in a few months, fresh

orders could lift the stock.

The luxury sector also faltered as France's LVMH

dropped 3.7%, the stock's biggest one-day drop in over 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 fell between 0.8% and 1.3%. The broader luxury

and personal and household goods indexes each

shed over 1.3%.

Both indexes have underperformed STOXX 600 so far this year.

China-exposed firms have grappled with dwindling sales in the

world's second-biggest economy, with sentiment getting a brief

boost from the latest stimulus measures.

Shoemaker Adidas fell 6.3% despite raising

its full-year sales and profit guidance.

Spain's benchmark closed at its highest since

January 2010, but Germany's DAX index retreated 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," Stanzl said.

Market participants expect the ECB to cut rates by another

25 basis points on Thursday, which could boost stocks.

Travel and leisure stocks rose 1.6% to top sectoral

charts, boosted by Whitbread's ( WTBCF ) 6% gain after the Premier

Inn owner said bookings were picking up for the holiday season.

Among others, Just Eat Takeaway lost 8.8% after

the food delivery company missed expectations for third-quarter

gross transaction value.

Tecan dropped 14.5% to the bottom of the STOXX

index after the Swiss life science equipment maker cut its

annual outlook.

Teleperformance topped the STOXX index with a

11.2% rise after Kepler Cheuvreux upgraded the office services

and call centre company's stock to "buy" from "hold."