SynopsisEuropean stock markets traded higher on Thursday, recovering from previous losses. Technology shares led the gains, driven by renewed interest in artificial intelligence demand. Oil prices eased despite ongoing geopolitical uncertainty in the Middle East region. Spanish equities outperformed regional peers after trade-related tensions eased. AstraZeneca shares tumbled significantly after a clinical trial setback.AgenciesMarkets continued to assess the implications of the latest U.S. military strikes on Iran, which followed President Trump's declaration that negotiations with Tehran had ended.European stock markets traded higher in choppy dealings on Thursday, supported by a rebound in technology shares as investors weighed geopolitical developments in the Middle East and signs of continued strength in artificial intelligence-related demand, as per a Reuters report.The pan-European STOXX 600 index rose 0.4% to 638.66 in early trading, recovering part of the sharp losses recorded in the previous session. According to Reuters, market sentiment improved after U.S. President Donald Trump indicated that Iran wanted to negotiate, easing some concerns over an escalation in the regional conflict.Technology stocks lead gainsTechnology stocks emerged as the top-performing sector, climbing 1.6% after a recent pullback. The sector had delivered its strongest quarterly performance since 2001 in June but had come under pressure this month as investors questioned elevated valuations.Chipmakers spearheaded Thursday's advance, with Germany-based Siltronic surging 7.4%, France's Soitec gaining 5.5%, and Dutch semiconductor equipment giant ASML rising 2.5%.Reuters reported that investor sentiment also received a boost from reports suggesting China could permit domestic artificial intelligence companies limited access to Nvidia's H200 chips, potentially supporting further investment in AI infrastructure.Oil prices ease despite geopolitical uncertaintyCrude oil prices edged lower as investors monitored the evolving situation in the Middle East. Oil remains a critical input for Europe's largely energy-importing economies, making price movements closely watched by equity investors.According to Reuters, markets continued to assess the implications of the latest U.S. military strikes on Iran, which followed President Trump's declaration that negotiations with Tehran had ended. The geopolitical tensions had triggered the STOXX 600's biggest one-day decline since March in the previous session.Spanish equities outperformSpain's benchmark equity index outperformed regional peers, rising 0.9% after hitting a three-week low on Wednesday.Reuters attributed the rebound to improved investor sentiment after President Trump described Spain as "very generous" following earlier trade-related tensions linked to the country's NATO spending commitments.AstraZeneca tumbles after trial setbackHealthcare stocks faced pressure after AstraZeneca fell 8%.The decline came after Reuters reported that the pharmaceutical company's nerve disease treatment Wainua, developed in partnership with U.S.-based Ionis Pharmaceuticals, failed to achieve the primary objective of reducing cardiovascular deaths and recurrent heart complications in a late-stage clinical trial.Market outlookEuropean equities remain highly sensitive to geopolitical headlines, energy price movements and developments surrounding artificial intelligence spending. While Thursday's recovery in technology shares provided support to broader markets, investors are likely to remain cautious as they monitor the Middle East situation, global trade developments and corporate earnings for further direction.Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless(You can now subscribe to our ETMarkets WhatsApp channel)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless