European shares moved higher in volatile trading on Thursday, supported by a rebound in technology stocks.
Investors also assessed the latest developments in the Middle East after U.S. President Donald Trump said Iran wanted to “make a deal.”
STOXX 600 Gains as Tech Stocks Lead
The pan-European STOXX 600 index rose 0.4% to 638.66 by 0710 GMT.
Technology stocks were among the strongest performers, with the sector gaining 1.6%.
Chip-related stocks led the rebound. Siltronic jumped 7.4%, Soitec climbed 5.5%, and ASML advanced 2.5%.
Chip Stocks Recover After Recent Weakness
The technology sector had recently cooled after posting its strongest quarterly performance since 2001 in June.
Thursday’s gains suggested that concerns over high valuations may ease for now.
However, despite the rebound, technology remains the weakest-performing sector on the STOXX 600 so far this month.
Nvidia Chip Report Boosts AI Sentiment
Global market sentiment also improved after a report suggested China could allow domestic AI companies limited access to Nvidia’s H200 chips.
The report raised hopes that demand for AI infrastructure could receive another boost, supporting chipmakers and other technology names.
Oil Prices Ease as Investors Watch Middle East Conflict
Crude oil prices were slightly lower as investors weighed Trump’s latest comments on the war.
Oil is especially important for Europe because the region depends heavily on energy imports.
The United States launched fresh strikes on Iran after Trump said on Wednesday that the deal with Tehran was over.
Those concerns weighed heavily on markets in the previous session, pushing the STOXX 600 to its biggest one-day drop since March.
Spanish Stocks Outperform Europe
Spanish stocks outperformed the wider European market, rising 0.9%.
The rebound followed a three-week low on Wednesday after Trump said Spain was “very generous.”
His comments came after he had ordered a halt to trade with Spain over its NATO contribution.
AstraZeneca Shares Fall After Trial Setback
AstraZeneca was one of the biggest decliners, falling 8%.
The decline came after Wainua, a nerve disease drug developed with U.S.-based Ionis, failed to meet the main goal in a late-stage trial.
The drug did not significantly reduce cardiovascular deaths and recurring heart problems, disappointing investors.
