[MARKET ANALYSIS] European bourses climb, helped by the lack of tech giants as global chip names continue to fall

European bourses (STOXX 600 +0.5%) are broadly higher, with underperformance in the tech–heavy AEX (-0.1%) following the slump in tech behemoths in Asia and throughout the US trading session on Monday. The drivers seem to be two-fold: 1) increased competition after CXMT said they made progress on new memory architecture, as they plan to roll out a new server-memory product by year-end, according to SCMP, 2) Broadcom CEO likens market sentiment to a casino and highlights concerns about AI buildout financing. Tech continues to be in favour for fund managers, with a BofA survey showing that the proportion of managers overweight tech has risen to 37% (prev. 30%). Sectors highlight the positive bias. Chemicals top the sector pile, with Health Care and Real Estate following closely behind. The sector laggards include Tech, Consumer, Products & Services and Basic Resources. LVMH (-1.5%) reported Q3 sales after the close on Monday. Headline revenue beat estimates; however, the widely watched Fashion & Leather Goods fell 5% (exp. -1.57%). As expected, struggles in China were highlighted as a major challenge, while the CFO added that short-term cost-cutting will not increase sales. Other key stories include: BP +1.2%, reaches its 2027 net debt target, helped by strong oil and gas trading and its oil processing business; Whitbread +1.8%, H1 revenue beat estimates and remains confident for 2027; Givaudan +6.9%, Q3 revenue and LFL sales top estimates; Publicis -0.3%, despite Q3 net revenue beating consensus and expects the business to turn positive globally in Q4. US equity futures are mixed, with underperformance in the NQ. Outside of the tech story, focus will be on banking earnings, with JPM, GS and C set to report.