European shares opened higher on Tuesday and were on track for their biggest quarterly gain in more than five years, boosted by optimism around artificial intelligence and signs of easing geopolitical tensions in the Middle East. The pan-European STOXX 600 index was up 0.6% at 639.77 points, as of 0804 GMT. The benchmark index is poised for a third consecutive monthly gain, and has climbed 9.7% for the quarter, its strongest quarterly performance since October 2020. Technology stocks rose 1.7% and were set for their strongest quarterly gain since October 2001, underscoring robust demand for AI infrastructure. The sector is also on track to outperform its Wall Street counterpart this month and quarter. Lithography giant ASML rose 3.33% on Tuesday, while chipmakers STMicroelectronics and Infineon added 3% and 2.7%, respectively. Shares of Siemens Energy added 5% after the AI-equipment maker reiterated strong demand trends at a pre-close quarterly earnings call on Monday. Signs of easing Middle East tensions have also been a key driver this quarter as prices of oil, a key resource for energy-deficient Europe, slipped to pre-Iran-war levels. Abivax jumped more than 20% after the drugmaker reported positive topline results for its obefazimod study. The broader healthcare sector gained 0.9%.
Europe's STOXX 600 on track for biggest quarterly gain in over five years on AI boost
European markets are soaring, marking their best quarterly performance in over five years. Optimism surrounding artificial intelligence and a de-escalation of Middle East tensions are fueling the rally. Technology stocks, particularly chipmakers like ASML and STMicroelectronics, are leading the charge, with Siemens Energy also seeing a significant boost. Easing oil prices further support the positive sentiment, making this a strong quarter for investors.
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