Europe shares rise as chipmakers rally

The pan-European STOXX 600 closed 0.79% higher at 554.97 points, with the wider technology index leading gains by rising 4.1%

European shares ended Thursday on a strong note in a chipmaker-driven rally, while SIG slumped after a profit warning.

The pan-European STOXX 600 closed 0.79% higher at 554.97 points, with the wider technology index leading gains by rising 4.1% – its biggest single-day advance since April 23.

The sector was boosted by European semiconductor stocks, which surged in line with their U.S. counterparts after chip bellwether Nvidia announced plans to invest $5 billion in struggling peer Intel.

Europe’s BE Semiconductor soared 7.9%, while equipment manufacturers ASML and ASMI climbed 7.7% and 8.7%, respectively.

Gains were also backed by the U.S. central bank’s overnight decision to cut interest rates by an expected quarter of a percentage point, the bank’s first dovish policy move since December.

The bank projected further cuts at meetings in October and December, prioritising the need to stall further weakening in the labour market.

The fact we’ve had a normal-sized reduction and guidance would suggest that it’s a slow and steady path for monetary easing. And investors clearly like that because it doesn’t imply that there’s major worries, said Daniel Coatsworth, investment analyst at AJ Bell.

Also contributing to STOXX 600 moves was the broader luxury sector, up 1.8%, alongside an index of automakers, up 1.2%.

Novo Nordisk soared 6.2% as investors turned more positive about the Danish drugmaker’s prospects following a key diabetes conference held in Vienna this week.

However, SIG Group slipped 24.3% after the Swiss packaging group issued a profit warning for 2025 and suspended its cash dividend.

Continental slumped 21.9% as the tire maker spun off Aumovio, which made its debut on the Frankfurt Stock Exchange with a total market value of around €3.5 billion euros ($4.14 billion).