Key Takeaways
- European shares gained, led by a strong performance in technology stocks.
- Investors remain cautious amid ongoing US-Iran conflict concerns.
- Chinese potential easing of AI chip restrictions boosted global sentiment.
European stock markets saw a positive start to the week on Thursday as tech stocks rebounded, driving gains across the pan-European STOXX 600 index. The benchmark rose by 0.5% to 639.12 points by 8:16 GMT, with technology and basic resources sectors leading the way.
Chip manufacturers such as Siltronic saw significant increases of over 10%, while Soitec and ASML also posted gains. These companies had recently reported their strongest quarterly performance since 2001, but investors now appear more focused on near-term valuations rather than long-term concerns.
The rebound in tech stocks came as global sentiment was bolstered by reports that China might allow domestic AI firms limited access to Nvidia’s H200 chips. This development could further boost demand for AI infrastructure and support the broader market outlook.
However, investor caution remained high due to ongoing tensions between the US and Iran. President Donald Trump's statement that a deal with Tehran was over led to fresh strikes on Iranian targets, which dampened spirits in the STOXX 600 index. The benchmark had its biggest one-day drop since March following these developments.
Spanish stocks outperformed their peers, rising by 1.1% after Trump praised Spain for its contributions to NATO. This came after a three-week low on Wednesday when trade with Spain was halted over its contribution levels.
Healthcare stocks lagged behind, with AstraZeneca experiencing a significant drop of 9.1% following the failure of its late-stage trial for a nerve disease drug. The company’s partnership with US-based Ionis faced setbacks in reducing cardiovascular deaths and recurring heart problems.
Other positive developments included strong performance from IT services provider Computacenter, which saw its shares jump by over 10%. This was attributed to robust demand for AI-related infrastructure, supported by the company's expectation of exceeding market expectations for full-year results.
Onshore wind turbine manufacturer Nordex also reported a boost in project orders, with year-on-year growth reaching 3,054 MW megawatts. Significant US-based orders contributed to this positive outlook.
