FRANKFURT: European shares notched up a record high close on Thursday, with healthcare stocks leading the way while a resurgent AI rally triggered by strong forecasts from Micron and Qualcomm lent support early in the session.
The pan-European STOXX 600 index ended 0.8 percent higher at a record close of 640.21, after touching an intrday record of 642.09 in the session. It was the biggest one-day jump in near two weeks.
Healthcare stocks were among the biggest boosts to the index, up 1.5 percent. Bayer jumped 18.7 percent to top the STOXX 600 after a court victory in which the US Supreme Court reined in thousands of lawsuits accusing the pharma firm of failing to warn users that the active ingredient in its Roundup weedkiller causes cancer.
Meanwhile, a rally in tech stocks helped push the STOXX 600 to an intraday high, but fizzled out later in the session. The sector closed up 0.8 percent after gaining as much as 2.5 percent in the session.
Strong forecasts from Micron and Qualcomm calmed investor concerns that a rally in global AI-linked stocks had run too far.
Chipmakers Infineon and STMicroelectronics gained 3.1 percent and 5.1 percent, respectively, while semiconductor equipment supplier ASML climbed 2.6 percent
AI-equipment maker Siemens Energy rose 2.3 percent.
“While Europe is sort of lacking tech leaders in a way, some of the companies are still in a place where they can get material benefits from it,” said Martin Frandsen, a portfolio manager at Principal Asset Management.
Elsewhere, US inflation broke above 4 percent in May, for the first time in three years, as the US-Israeli conflict with Iran drove up energy prices, keeping an interest rate increase from the Federal Reserve this year on the table.
“Today’s data is a reminder that inflation remains well above target and growth remains solid. This will keep the Fed on hold for quite some time, until conditions allow for a cut,” said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management.
Oil prices reversed declines to gain after a report said Tehran planned to make billions in fees from reopening the Strait of Hormuz.
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