European Stocks Hit New Records
European stock markets closed higher on Thursday (June 25th), driven by a recovery in the technology sector and positive sentiment toward stocks related to artificial intelligence.
The Euro STOXX 50 rose 0.8% to 6,263, while the STOXX Europe 600 also gained 0.8% to hit a new record high of 640.
This gain came after a previously limited market movement. Investors returned to the technology sector after a strong report and guidance from Micron Technology in the United States restored confidence in the AI trade. This sentiment helped reverse the pressure that had previously been felt in chip stocks and companies exposed to artificial intelligence infrastructure.
European semiconductor stocks also received a boost. ASML rose 2.6%, while Infineon gained 2.3%. Siemens Energy also gained 2.5%, supported by optimism about the need for electricity and data center infrastructure related to the expansion of technology and AI.
In addition to technology, the banking sector also rebounded. Falling energy prices helped ease inflation concerns and put downward pressure on government bond yields in the Eurozone. Lower yields supported the outlook for credit activity, leading shares of BNP Paribas and BBVA to rise by around 1.5% each.
Bayer shares were in the spotlight after surging nearly 20%, recording their strongest daily gain in 23 years. The surge occurred after the United States Supreme Court sided with the German pharmaceutical company in a lawsuit related to its Roundup weed killer. The decision eased investor concerns about the legal burden that had been weighing on Bayer's shares.
With the combination of a technology rally, falling energy prices, a rebound in the banking sector, and Bayer's surge, European stock markets managed to close trading at record levels. Looking ahead, investors will be watching to see whether the boost from AI and easing energy inflation pressures are strong enough to maintain the positive momentum of European markets.
Source: Newsmaker.id
