Key facts
- European shares opened higher on Tuesday, with the STOXX 600 index up 0.6%.
- The STOXX 600 is on track for its strongest quarterly performance since October 2020, with a 9.7% gain.
- Technology stocks rose 1.7%, set for their best quarterly performance since October 2001.
- ASML, STMicroelectronics, and Infineon saw share price increases.
- Siemens Energy reiterated strong demand trends, leading to a 5% share price jump.
- Easing Middle East tensions contributed to a drop in oil prices.
European shares opened higher on Tuesday, with the pan-European STOXX 600 index rising 0.6% and on track for its largest quarterly gain in over five years. The benchmark index is poised for a third consecutive monthly gain, with its quarterly climb of 9.7% being its strongest performance since October 2020.
Optimism surrounding artificial intelligence has fueled a 1.7% rise in technology stocks, which are set for their strongest quarterly gain since October 2001, underscoring robust demand for AI infrastructure. This sector is also outperforming its Wall Street counterpart for the month and quarter.
Key technology companies saw share price increases, with lithography giant ASML up 3.33%, chipmakers STMicroelectronics and Infineon adding 3% and 2.7% respectively. Siemens Energy shares climbed 5% after the AI-equipment maker reiterated strong demand trends during a pre-close quarterly earnings call.
Signs of easing geopolitical tensions in the Middle East have also contributed to market gains, with oil prices slipping to pre-Iran-war levels. The broader healthcare sector gained 0.9%, boosted by Abivax, whose shares jumped more than 20% after reporting positive topline results for its obefazimod study.