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.
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The U.S. military said it completed its latest wave of strikes on Iran, a two-hour operation that hit dozens of targets. Washington described the strikes as a "powerful response" to Iranian missile attacks targeting U.S. forces in the Middle East a day earlier.
Saudi Arabia said its overnight strikes on Iran-backed group targets in Iraq were carried out in self-defence and warned it would take further military action if the groups launched new attacks against the kingdom.
Ukraine targeted a warehouse belonging to Russia’s largest retailer, Wildberries, and an oil refinery overnight, while Moscow said its forces struck a ship carrying military cargo in the Black Sea.
Iran’s army said it targeted U.S. military facilities in Bahrain and Kuwait with drone attacks. Tehran said the operations were carried out in retaliation for recent U.S. strikes.
Thousands of migrants have crossed into the Spanish exclave of Ceuta from Morocco, overwhelming border security and prompting local authorities to call for a national emergency and military deployment.
Ford raised its full-year earnings forecast after reporting stronger-than-expected second-quarter adjusted profit, as resilient demand for its vehicles and operational improvements helped offset tariff-related costs.
SK Hynix reported record quarterly profit on Wednesday, but its shares slumped 10 per cent after the South Korean chipmaker fell short of investor expectations built around the artificial intelligence (AI) boom.
Oil prices have fallen more than six per cent as a pause in U.S.-Iran hostilities eased fears of wider supply disruption around the Gulf.
Paramount Skydance agreed to pause its acquisition of Warner Bros Discovery until after a ruling on a challenge by states to the deal, plunging the $110 billion deal into further uncertainty.
China's Foreign Ministry has said it is closely monitoring the United Kingdom's nationalisation of British Steel. Prior to the British government fully taking over the loss-making company on Thursday, it was previously owned by Chinese private steelmaker Jingye.
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