European stock markets edged higher on Thursday (14 May) as technology shares boosted sentiment, although investors remained cautious over stalled U.S.-Iran talks and a closely watched summit between Washington and Beijing.
The pan-European STOXX 600 index rose 0.4 per cent to 613.98 points by mid-morning trading, building on Wednesday’s 0.8 per cent gain. Germany’s DAX climbed 1.2 per cent, while Britain’s FTSE 100 was broadly flat despite stronger-than-expected economic data showing the UK economy expanded by 0.3 per cent in March.
Trading activity remained subdued, with several European markets closed for public holidays.
Markets are balancing optimism around artificial intelligence with fears of wider instability in the Middle East. U.S. President Donald Trump is expected to press China to help end the Iran conflict after negotiations between Tehran and Washington stalled.
“We await the developments in China. But really the focus is on AI,” said Frédérique Carrier, head of investment strategy at RBC Wealth Management. “All eyes are on the Middle East crisis for that to really be resolved.”
Technology stocks were among the strongest performers. Europe’s technology index gained 1 per cent, helped by semiconductor companies including STMicroelectronics, ASM International, BE Semiconductor Industries and Infineon Technologies, which rose between 1.4 per cent and 2.8 per cent.
The rally reflects growing confidence that companies linked to AI and data centres will continue to benefit from heavy investment. However, European shares remain below the levels seen before the outbreak of the Iran conflict, while U.S. markets have already returned to record highs.
Carrier said Europe’s earnings season had been solid, particularly for banks and industrial firms linked to electrification and data centres, although it “pales in comparison” with the stronger performance seen in the United States.
Among individual companies, Burberry fell 4.7 per cent after reporting fourth-quarter sales in line with expectations. Watches of Switzerland jumped 14 per cent after forecasting full-year operating profit above market expectations.
Investment group 3i Group dropped almost 16 per cent following its results, dragging the financial services sector down 0.8 per cent.
Meanwhile, Legal & General rose 5.2 per cent after the Financial Times reported that the company was not considering a sale.
Investors are also reassessing the outlook for interest rates after European Central Bank chief economist Philip Lane signalled that further rate rises may be needed to tackle inflation.
Money markets are now pricing in more than two ECB rate increases this year, with the first expected in June.
Venezuelan opposition leader María Corina Machado has returned to the South American nation almost a year after she secretly left the countr...
Uzbekistan summoned Iran’s ambassador following claims by several Iranian diplomatic missions that the historical and architectural heri...
Kazakhstan marks Republic Day on 25 October with an ambitious economic agenda and a growing partnership with Azerbaijan, as the two Caspian neighbo...
Around 11,000 people joined a demonstration in Orléans on Saturday against the National Rally congress, according to the local prefecture.
Typhoon Champi swept past Taiwan on Saturday, leaving one person dead and more than 500 injured as strong winds and torrential rain brought down trees, cut power and disrupted transport across the island.
French President Emmanuel Macron on Friday described a deadly shooting in the towns of Trappes and La Verrière, west of Paris, as a racist attack and ‘a turning point’ for the country.
Israeli forces have maintained a tight closure on Hebron in the occupied West Bank for a second day, with Palestinian media reporting home raids, mass detentions and dozens of residents forced outside following a shooting incident the day before.
German police have detained a suspect after a major fire broke out at the historic Kehlsteinhaus, known as the “Eagle’s Nest”, a mountain retreat once used by senior Nazi officials, including Adolf Hitler.
Venezuelan opposition leader María Corina Machado has returned to the South American nation almost a year after she secretly left the country to travel to Norway for the Nobel Peace Prize ceremony.
Riot police fired tear gas at protesters in France’s largest cities and more than 1,300 people were arrested during demonstrations against the rising cost of living on Saturday (24 October). Police also used a water cannon on a group of around 500 hooded youths in Paris, after the main rally ended.
Ukraine's military has been hit this month by restrictions on Starshield, the military version of SpaceX's Starlink satellite communications system. Its receivers stopped functioning when mounted on fast-moving objects such as drones, jeopardising some combat and air defence missions.
At least five people were killed and several others injured in overnight attacks across Russia and Ukraine on Sunday, 25 October, as officials reported strikes on residential areas and industrial facilities, while Moscow claimed to have targeted logistics infrastructure and a cargo vessel.
Protests against war and rising living costs took place in major Italian cities on Saturday, with some incidents of violence and clashes, a week after unrest erupted across the country.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment