Key facts
- European shares rose Tuesday, with the STOXX 600 index up 0.44% to 638.44 points.
- Lower oil prices and falling bond yields boosted investor sentiment.
- Technology stocks declined 1.5% due to competition concerns from China's ChangXin Memory Technologies (CXMT).
- CXMT announced progress on DRAM design and plans for a new server-memory product.
- Nokia shares fell 4.4% after agreeing to sell its Enterprise Campus Edge business to Aurelius.
European shares edged higher on Tuesday, reaching a one-week high as a drop in oil prices and falling bond yields boosted investor sentiment. The pan-European STOXX 600 index rose 0.44% to 638.44 points by 0714 GMT, with London's FTSE 100 showing the strongest performance with a gain of approximately 1%.
Oil prices declined as traders evaluated supply risks and considered potential additional diesel supplies from Russia. The chemicals sector led gains among industries, climbing 2%.
However, the technology sector fell 1.5%, mirroring a global downturn. This weakness was attributed to reports of advancements by Chinese memory-chip maker ChangXin Memory Technologies (CXMT), which fueled concerns about intensifying competition for established memory-chip producers. OCBC analysts highlighted CXMT's progress on a denser DRAM design and plans to launch a new server-memory product by year-end.
Individually, LVMH shares saw a slight increase despite reporting third-quarter sales that fell short of expectations. Nokia's stock dropped 4.4% after the Finnish telecom equipment maker agreed to sell its Enterprise Campus Edge business to private equity firm Aurelius. Investors were also anticipating key September economic data from Germany later in the day.