European shares rise on strong results from LVMH, Remy Cointreau

European equities opened higher on Friday, boosted by upbeat quarterly updates from luxury group LVMH and spirits maker Remy Cointreau, while investors gauged interest rate cut prospects, a day after the European Central Bank left rates unchanged.

By 0819 GMT, the pan-European STOXX 600 index was up 0.4%.

LVMH jumped 8.2% after the world’s largest luxury group posted a 10% rise in fourth-quarter sales, driven by resilient demand, including from Chinese buyers.

The stock lifted the personal and household goods index up 3.0% to lead sectoral advances.

Remy Cointreau was also among top performers, up 13.3% after the French spirits maker posted a slightly smaller-than-expected decline in third-quarter sales.

France’s CAC 40 index, housing both the stocks, rallied to gain 1.3% and outperformed other regional bourses.

The ECB held interest rates at a record-high 4% on Thursday and reaffirmed its commitment to fighting inflation even as the time to start easing borrowing costs approaches. Despite the central bank’s push back against “premature” rate cuts, traders are now pricing in nearly 140 basis points cut this year, up from around 130 bps a day earlier.

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