European stocks rise as STMicroelectronics' forecasts lift tech stocks

[European ​shares](https://European stocks) opened higher on Tuesday as strong forecasts from ‌chipmaker STMicroelectronics lifted technology stocks, while investors awaited a key inflation report later in the day for insights into how the Mideast conflict has affected ​the euro zone economy.

The pan-European STOXX 600 index rose 0.7% ​to 625.20 points by 0715 GMT. Technology stocks led ⁠sectoral gains with a 2.4% rise.

Chipmaker STMicroelectronics rose 9.8% to ​hit 65.1 euros, its highest since September 2000, after lifting revenue targets ​for its data centre business, signalling strong demand from the AI boom.

Other AI-related stocks such as Infineon and Schneider Electric added 5.2% and 2.4%, respectively.

Lebanon announced ​a partial ceasefire between Hezbollah and Israel on Monday following a ​brief escalation of hostilities, which also aided risk sentiment.

Crude prices eased about 1% ‌as ⁠investors pinned hopes on U.S. President Donald Trump’s remarks that talks with Iran were ongoing, despite a report saying that Tehran had indirect negotiations with Washington.

Still, at $94 a barrel, energy prices will likely ​remain painful, analysts ​said.

A report on ⁠euro zone consumer inflation, due later in the day, is expected to show consumer prices rose ​3.2% in May on an annual basis from the ​month ⁠before.

Traders expect the European Central bank to hike interest rates by 25 basis points when it meets next week, according to data compiled ⁠by ​LSEG.

Among individual shares, Abivax  fell 27% after the ​French drugmaker published the late-stage trial results for its inflammatory bowel drug.