FRANKFURT: European shares gained for the first time this week on Thursday, as a rebound in technology stocks tempered lingering concerns about the war in the Middle East.
The pan-European STOXX 600 index rose about 0.8 percent to 640.88points. Technology stocks and basic resources were the top gainers, up 2.7 percent and 3.2 percent, respectively.
“Despite a slump in business and consumer surveys since the start of the Iran war, economic activity seems to have held up quite well,” said Andrew Kenningham, chief Europe economist at Capital Economics.
The advance on Thursday followed three consecutive sessions of declines. Softer inflation and a drop in oil prices in the last few weeks had pushed the STOXX 600 to a record on Monday, but a renewed wave of strikes between the US and Iran shattered the calm.
Markets will now shift their focus to the upcoming earnings season, which could draw some attention away from the geopolitical turmoil.
“Investors have also become a little more immune to developments (in the Middle East), viewing them as part of what has always been a choppy path towards a broader agreement,” said Fiona Cincotta, senior market analyst at City Index.
Computer chip stocks Siltronic, Soitec and ASML rose 13.4 percent, 5.9 percent and 4.8 percent, respectively.
Global sentiment was buoyed by a report that said China could allow domestic AI firms limited access to AI leader Nvidia’s H200 chips, suggesting demand for AI infrastructure could get a boost.
Spanish stocks outperformed the region, up 1.1 percent from a three-week low on Wednesday, after US President Donald Trump said Spain was “very generous” after he threatened to halt trade with it.
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