Japan shares fall on weak chip market outlook while LVMH sales drop drags Europe down

Japan shares took a hit as ASML cut its outlook, with its CEO warning that the recovery in semiconductors was weak outside the hot AI sector.

• S&P 500 Futures : 5,863.50 ⬆️ up 0.01%
• S&P 500 : 5,815.26 ⬇️ down 0.76%
• Nasdaq Composite : 18,315.59 ⬇️ down 1.01%
• Dow Jones Industrial Average : 42,740.42 ⬇️ down 0.75%
• STOXX Europe 600 : 518.71 ⬇️ down 0.36%
• CSI 300 : 3,831.59 ⬇️ down 0.63%
• Nikkei 225: 39,180.30 ⬇️ down 1.83%
• Bitcoin: $67,211.567 ⬆️ up 2.4%

China: Shares take a break ahead of housing briefing

China shares took a breather after a big day of losses Tuesday. Housing stocks saved the markets from steeper losses, as investors awaited a briefing—and possible new stimulus measures—from the country’s housing minister on Thursday morning. The CSI 300, which tracks the 300 top stocks on the Shanghai and Shenzhen exchanges, gave up 0.63%, while Hong Kong's Hang Seng fell 0.16% and Shanghai eeked out a 0.05% gain.

Japan: Semiconductor shares drag down market

The Nikkei 225 dropped 1.83% as semiconductor shares dragged down the market after ASML accidentally reported disappointing results a day early, and its CEO offered a sober assessment of demand beyond AI. Chip industry company Tokyo Electron plunged 9.19%, while Softbank, the majority owner of semiconductor heavyweight Arm Holdings, fell 3.97%.

Europe: Shares drop as luxury woes pile onto chip worries

European stocks posted small losses early Tuesday as ASML's bad news was amplified by LVMH's bad third-quarter report, as it announced a 3% drop in sales—and 16% in China's region—and CFO Jean-Jacques Guiony said that “consumer confidence in mainland China today is back in line with the all-time low reached during COVID.” LVMH was down 3.9% in early trading, while ASML gave up another 3.2%. The Stoxx Europe 600 was down 0.36% while the FTSE 100 rose 0.65% after the national ststistics office announced inflation for September of 1.7%, down from 2.2% in August and the lowest since April 2021..

U.S. premarket mixed after tech-driven down day

U.S. markets were largely unchanged in premarket trading Wednesday, a day after tech stock drops hit Wall Street, with Nvidia's 4.5% drop weighing down the S&P 500. Nvidia rebounded a bit Wednesday, posting gains of some 0.5% in early trading.

And earnings season continues…

Morgan Stanley reports today; Netflix has its turn Thursday; and Friday features P&G and American Express .

This story was originally featured on Fortune.com