FRANKFURT: European shares rose on Tuesday as gains in technology and mining shares took the focus away from fresh strikes in the Middle East, which pushed oil prices higher, while investors sifted through a fresh round of earnings reports.
Brent crude jumped more than 2.5 percent after US forces bombed targets in the south and west of Iran overnight.
The pan-European STOXX 600 index climbed 0.6 percent to 643.19 points at close, breaking a two-day losing streak.
Technology stocks rose 2.1 percent, the most on the index, with ASMI and ASML, gaining 5.4 percent and 4.7 percent, respectively.
Earnings from major technology companies such as Alphabet in the US will be on watch this week for clues on the sustainability of AI-related demand and whether their lofty valuations can be justified.
“We have seen these ebbs and flows in sentiment… that highlights the sort of the nervousness that there is surrounding tech, particularly the AI and chip trade,” said Fiona Cincotta, senior market analyst at City Index.
“But if we do see another solid season, that could actually be a catalyst for the next leg higher in tech stocks.”
Markets will also be on the lookout for earnings from major banks such as Banco Santander and BNP Paribas later in the week.
“Improving returns on equity are not yet reflected in valuations for European banks, which still trade at close to a 30 percent discount to US peers,” said analysts at Lombard Odier Investment Managers.
Miners climbed 1.7 percent, tracking higher copper and gold prices, although Swedish miner Boliden fell 5.7 percent, after a weaker-than-expected quarterly adjusted operating profit.
On the flip side, the media sector was the biggest laggard, down 1.4 percent. Wienerberger shares fell 4.1 percent to their lowest since 2022, after the building materials maker issued a full-year profit warning, citing deterioration in new-build activity.
Copyright Business Recorder, 2026
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