European shares advance as Nvidia earnings ignites global markets

European shares climbed on Thursday, as a relief rally swept through global markets after artificial intelligence (AI) bellwether Nvidia reported strong earnings, while investors awaited the release of delayed U.S. jobs data.

The pan-European STOXX 600, was up 0.7% at 565.85 points as of 0938 GMT.

Bourses in Germany and France, also rose about 0.8% each.

Chip designer Nvidia's blowout quarterly results and positive outlook come at a crucial time for investors, who have been rattled in recent weeks by fears of an AI bubble.

Nvidia's results temporarily eased investor anxiety, with the company's shares rising 5.5% in U.S. premarket trading.

"The strong results do not erase AI bubble fears, but rather push them below the surface, offering a brief reprieve for markets," said Daniela Hathorn, senior market analyst at Capital.com.

The rebound among chipmakers was further fuelled by reports that the U.S. may delay its planned 100% tariffs on semiconductor imports to ease tensions with China.

The European tech index climbed 1.2%, with Infineon and ASML gaining about 2% each.

AI equipment makers that have benefited from the technology boom, such as Schneider Electric and Siemens Energy were up 2% and 4%, respectively.

Europe's defence index was up 2.1%, having slid nearly 3% on Wednesday on signs of a fresh U.S.-led push to end the Russia-Ukraine war.

On the financials side, European banking stocks were among the biggest gainer on the index, up more than 1.3% each.

"At a time where there is so much focus and emphasis placed on the tech sector, financials and banks have been steadily creeping up in the shadows," Hathorn said.

BNP Paribas gained 5.7% after the French bank raised its CET1 ratio target, a gauge of financial stability, to 13% by 2027.

Later in the day, the focus will shift to a long-awaited official U.S. jobs report that could sway expectations regarding the Federal Reserve's monetary policy verdict next month.

Analysts say the coming U.S. figures could offer clues on the Federal Reserve's next steps, with weaker labour-market data potentially reinforcing expectation of an interest-rate cut. 

Geopolitical developments between Russia and Ukraine also remain on investors' radar, alongside a full data calendar in the Eurozone led by the Consumer Confidence Index. 

Copied