European Stocks Rise, AI Stocks Rebound
European stock markets closed higher on Tuesday (July 21st), supported by a rebound in the global artificial intelligence (AI) sector. Investors are starting to return to technology stocks ahead of the release of major issuers' earnings reports this week.
The Euro STOXX 50 index rose 0.9% to 6,829, while the STOXX Europe 600 index gained 0.5% to 643. These gains indicate improving market sentiment after previously being under pressure from technology and chip stocks.
ASML shares jumped 4.7%, while Infineon surged 6.8%. Both gains followed gains in stocks with exposure to the semiconductor industry, after strong export data from South Korea and Taiwan revived speculative interest in the chip sector.
Siemens Energy also rose 4%, seen as benefiting from the electricity demand for data centers. Energy demand from data centers is a key theme amidst rising AI investment.
In the banking sector, UniCredit and BNP Paribas each rose 1.5% ahead of their earnings releases. Outside the eurozone, Novartis rose 2.1% after posting better-than-expected results, although pressure from expiring patents prevented the company from raising its performance guidance.
Impacting the market, the strengthening of European stock markets indicates investor confidence in the AI and semiconductor themes. However, risks remain, as European natural gas prices have risen again due to the Middle East war, which has disrupted LNG exports to the region. If energy pressures persist, inflation and production costs could again limit stock gains.
Source: Newsmaker.id
