European shares edged higher on Tuesday, with technology stocks leading the advance. Gains were tempered by rising oil prices and elevated bond yields, as investors awaited key economic data from the US and euro zone.
The performance of European equities reflects a tug-of-war between the growth outlook for technology and AI, and persistent inflationary pressures from energy prices and rising interest rates, impacting investor sentiment and corporate outlooks.
European shares edged higher on Tuesday, with technology stocks providing support while rising oil prices and elevated bond yields limited gains. The pan-European STOXX 600 index was up 0.3% at 640.28 points by 0719 GMT.
Semiconductor stocks were among the leading gainers, influenced by a Reuters report that Anthropic is making a significant investment in AI's transformative potential for the global economy, anticipating public investor financing for its expansion. The company's public offering is expected to value it at over $2 trillion.
Broader market gains were constrained by the ongoing Middle East conflict, which kept Brent crude futures at $106.99 a barrel. Investors were also awaiting US job openings data and the final reading of euro zone consumer confidence later in the day.
Individually, French electrical and digital building infrastructure group Legrand saw its shares advance 5.8% after it raised its medium-term targets.
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