European shares rise as tech gain offsets oil rise

The pan-European STOXX 600 index jumped 0.6% to 643.19 points at ​close, breaking a two-day losing streak

European shares rose on Tuesday as ​gains in technology and mining shares took the focus away from latest strikes in the ‌Middle East, which pushed oil prices higher, while investors sifted through a new round of earnings reports.

Brent crude climbed more than 2.5% after attacks continued in the Middle East.

The pan-European STOXX 600 index jumped 0.6% to 643.19 points at ​close, breaking a two-day losing streak.

Technology stocks gained 2.1%, the most on the index, with ASMI and ​ASML, adding 5.4% and 4.7%, respectively.

Earnings from major technology companies will be on watch this week for clues on the sustainability of AI-related demand and whether their lofty ​valuations can be justified.

We have seen these ebbs and flows in sentiment that highlights the sort of the nervousness ​that there is surrounding tech, particularly the AI and chip trade, said Fiona Cincotta, senior market analyst at City Index.

But if we do see another solid season, that could actually be a catalyst for the next leg higher in tech stocks, Cincotta said.

Markets will also be ​on the lookout for earnings from major banks such as Banco Santander and BNP Paribas later in the week.

Improving ​returns on equity are not yet reflected in valuations for European banks, said analysts at Lombard Odier Investment Managers.

Focus will turn to commentary from European Central Bank policymakers at their monetary policy meeting on Thursday, where they are expected to hold interest rates steady.

Still, market participants are pricing in at least one 25-basis-point hike by end-2026, according ⁠to LSEG-compiled ​data.