European Stocks Rise Slightly, Technology Supports
European stock markets closed slightly higher on Monday (June 29th), supported by gains in the technology and energy sectors. The Euro STOXX 50 Index rose 0.2% to 6,234, while the STOXX Europe 600 gained 0.1% to 636, remaining near its record high.
Technology stocks were one of the market's main drivers after being under pressure last week. Chipmakers and companies with exposure to artificial intelligence (AI)-based software were once again sought after by investors. ASML shares rose 2.3%, while Prosus rose 2.6%.
The strengthening of the European technology sector followed positive movements on Wall Street. Investors reassessed their positions in AI-based stocks after several major players in the sector updated their performance forecasts last week. However, the market remained cautious as AI stocks were already considered overvalued.
The energy sector also strengthened after the weekend's attacks between the United States and Iran halted a sharp decline in crude oil prices. Rising energy prices helped energy producer stocks rebound, although geopolitical risks in the Middle East remain a major concern for investors.
On the other hand, banking stocks lagged as government bond yields rose again during the trading session. Market focus now shifts to the European Central Bank (ECB) forum in the coming days. Investors are awaiting signals from ECB Governing Council members regarding the likelihood of an interest rate hike this year, especially as energy prices have begun to decline but core inflation continues to show upward pressure. (arl)
Source: newsmaker.id
