European Stocks Rebound on Technology
European stock markets rallied on Thursday (June 25th), after the technology sector was boosted by optimism about demand for artificial intelligence. The Euro STOXX 50 rose 0.6%, while the STOXX Europe 600 gained 0.4%, snapping two consecutive sessions of decline. Market sentiment improved after Micron Technology's report and sales guidance showed that demand for memory chips for AI infrastructure remains strong.
Micron's performance was a key driver of the recovery in global technology stocks. The company provided a sales outlook that was much stronger than Wall Street's expectations, allaying concerns that the AI rally was losing steam. Investors again recognized that the need for data centers, memory chips, and AI-supporting components remains a key driver for the technology sector.
This strengthening also boosted European chip stocks. ASML Holding rose 3.9%, while STMicroelectronics and Infineon Technologies gained 4.5% and 5.9%, respectively. The rise in these stocks indicates that the market is returning to issuers with significant exposure to the global semiconductor supply chain, after the sector was previously pressured by a sharp sell-off.
On the other hand, the decline in oil prices also helped market sentiment. Oil prices have returned to pre-Iran conflict levels, easing concerns about energy inflation pressures. If energy prices remain low, the market believes central banks will have more room to be less aggressive in raising interest rates, although US inflation data remains a major concern.
In addition to the technology sector, 3i Group shares also attracted attention after surging more than 9%. This increase occurred after sales at its portfolio company, Action, slowed less than investors had feared. With the combination of a technology rebound, weakening oil prices, and several better-than-expected corporate reports, European markets managed to move positively after two days of pressure. (Asd)
Source: Newsmaker.id
