European shares higher, led by industrials and automakers

The pan-European STOXX 600 increased 0.45 per cent to 578.84 points at the close, its third session of gains

European shares closed higher on Thursday, led by industrials and automakers, as global risk appetite improved, while investors digested a mixed bag of corporate updates.

The pan-European STOXX 600 increased 0.45 per cent to 578.84 points at the close, its third session of gains.

Automakers led sectoral advances, jumping 2.2 per cent, with Porsche and Mercedes-Benz gaining 5.7 per cent and 4.4 per cent respectively.

Industrial stocks also rallied 1.4 per cent. Schneider Electric and Siemens Energy added 3.2 per cent and 2.5 per cent, respectively, after J.P. Morgan upgraded both companies’ ratings to “overweight” from “neutral.”

Those moves supported regional indexes, with those in Germany and France up around 0.9 per cent and 0.6 per cent, respectively.

There’s finally a bit of good news for a sector that has struggled to make sustained headway in terms of real upside for quite some time. The loosening of regulation might just allow the sector a bit of breathing room, IG Chief Market Analyst Chris Beauchamp said.

Traders cited reports that Chinese chipmaker Cambricon planned to triple chip output to replace Nvidia in China’s AI market, which boosted the sector’s outlook.

Banks recovered 1.1 per cent after the previous day’s losses, while defence stocks rose 0.9 per cent as investors monitored Ukraine peace talks. Trump said on Wednesday the path ahead for Ukraine peace talks is unclear.

Meanwhile, the heavyweight healthcare sector underperformed with a 0.6 per cent decline. Philips dipped 5.6 per cent after Citi flagged concerns about the medical technology company’s 2026 growth expectations.

Among other stocks, Societe Generale advanced 3.2 per cent after Goldman Sachs upgraded the stock to “buy” from “neutral.”