Finance
European shares rise as US spending boosts luxury stocks
Published by Global Banking and Finance Review
Posted on September 23, 2025
3 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 23, 2025
3 min readLast updated: January 21, 2026
European shares rise as US spending boosts luxury stocks, with STOXX 600 reaching a weekly high. Orsted's wind project restart also contributes to gains.
By Shashwat Chauhan, Amir Orusov and Pranav Kashyap
(Reuters) -European stocks touched their highest in more than a week on Tuesday, lifted by a rally in luxury goods companies on higher U.S. spending and gains for wind energy stocks after a court ruled that Orsted could restart work on a U.S. offshore project.
The pan-European STOXX 600 closed up 0.4%, after having touched its highest since September 16 earlier in the session. Most regional bourses also closed higher.
Portugal stocks closed at their highest in more than three weeks after the country kept its budget surplus target for 2025, allowing it to continue reducing its debt ratio.
Meanwhile, luxury stocks such as LVMH, L'Oreal and Richemont were all among the top 10 gainers on the STOXX. American luxury spending turned positive in September for the first time in 37 months, BofA card data showed.
Shares of Orsted jumped 4% after a U.S. federal judge ruled that the Danish offshore wind developer could restart work on a nearly finished wind farm project off the coast of Rhode Island.
"We take it as a favourable development," said Laura Cooper, global investment strategist at Nuveen, who has a favourable outlook on the clean energy sector.
Retailers climbed nearly 2%, boosted by a 14.6% surge in home improvement retailer Kingfisher after it raised its full-year profit outlook.
Ireland's Kingspan Group jumped 8.2% after announcing plans for an IPO of 25% of its data centre unit ADVNSYS, which could leave the building materials maker debt-free.
The broader technology index rose 0.6%, reversing early losses, following gains in Wall Street tech shares as Nvidia said it would invest up to $100 billion in OpenAI and supply it with data centre chips.
European stocks, which outperformed U.S. peers in early 2025 on defence-related gains, have since lagged as AI optimism lifted America's tech giants.
The S&P 500 is up close to 14% so far this year, compared with the STOXX 600's about 9.3% gain.
The healthcare sub-index fell 1.2%, snapping its longest daily winning streak in more than a month, with shares of drugmaker Roche and Novo Nordisk down more than 2% each.
On the data front, euro zone growth held firm, buoyed by Germany's fiscal firepower that helped offset France’s economic jitters, but storm clouds may be gathering as U.S. tariffs begin to bite, key data showed Tuesday.
France's economy shrank over the same period, while British businesses reported waning momentum and confidence.
Bank of England Chief Economist Huw Pill struck a cautiously optimistic tone, saying he was more at ease with inflation prospects than earlier this year.
In Sweden, the central bank trimmed its policy rate to 1.75% and signalled a prolonged pause ahead. Stockholm's benchmark index closed up 0.7%, after hitting a near one-month high.
(Reporting by Shashwat Chauhan and Pranav Kashyap in Bengaluru and Amir Orusov in Gdansk; Editing by Sherry Jacob-Phillips, Nivedita Bhattacharjee and Alex Richardson)
European stocks rose due to a rally in luxury goods companies spurred by higher U.S. spending and gains in wind energy stocks following a favorable court ruling.
Luxury stocks such as LVMH, L'Oreal, and Richemont were among the top 10 gainers on the STOXX index.
The healthcare sub-index fell by 1.2%, ending its longest daily winning streak in over a month, with shares of drugmakers Roche and Novo Nordisk declining more than 2% each.
While euro zone growth remained firm, concerns arose as U.S. tariffs began to impact economic conditions, particularly affecting France's economy.
Investment strategist Laura Cooper expressed a favorable outlook on the clean energy sector, especially after a U.S. federal judge allowed Orsted to restart work on a wind farm project.
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