European stocks close at a near three-week peak, with luxury sector leading; anticipation builds for Fed's upcoming decision.

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Sep 15 2025

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Source: Reuters

European Market Performance: European shares closed near a three-week high, driven by gains in luxury and defense stocks, with the pan-European STOXX 600 rising 0.42% to 557.16 points ahead of key central bank meetings.
Luxury and Defense Stocks Surge: The luxury index saw a 1.9% increase, led by major brands like LVMH and Kering, while the aerospace and defense index jumped 1.74%, reflecting increased military spending in Europe.
Impact of U.S. Federal Reserve Expectations: Anticipation of a potential interest rate cut by the U.S. Federal Reserve contributed to overall market optimism, overshadowing Fitch's downgrade of France's sovereign credit rating.
Mixed Results Among Individual Stocks: While UBS shares rose 2.3% amid potential U.S. expansion, AstraZeneca fell 3.2% after a rating cut and news of a paused investment, highlighting varied performance across sectors.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.