European shares trade higher despite weak earnings report

European stocks traded slightly higher on Tuesday ahead of a U.S. decision to roll out additional stimulus plans despite the underwhelming quarterly earnings reports from the luxury goods market.

The pan-European STOXX index inched higher by 0.3% at 03:19 AM ET (0719 GMT), while the German DAX index rose by 0.5%. In the U.K., the FTSE index gained 0.6%.

As new COVID-19 cases continued to dampen market sentiments on Monday, investors kept an eye out for the conclusion of a U.S. Fed meeting as they decide on whether more fiscal stimulus would be required to prop up the U.S. economy.

Meanwhile, shares of luxury makers fell, with Louis Vuitton owner LVMH falling as low as 2.8% after the pandemic dented its second-quarter sales. Stocks of Gucci owner Kering as well as France’s Hermes also fell, while luxury jacket maker Moncler saw its shares falling by 4%, reporting losses for the first half of the year for the first time ever.