The pan-European Stoxx 600 index rose 0.7% to 661.99 points on Thursday. This increase brought the index close to its all-time high. Strong gains in mining stocks pushed the index higher, while technology shares lagged due to concerns over regulatory scrutiny.
Key Details
Mining stocks saw a boost from ArcelorMittal, which gained 5% after exceeding profit expectations. Spain’s IBEX led regional benchmarks with a 1.7% increase. Investors reacted positively to the Democratic sweep in the U.S. midterm elections. This outcome could lead to more efforts to resolve the Iran conflict and limit excessive fiscal spending.
However, uncertainty remains in the technology sector. Concerns about possible tightening of artificial intelligence regulations could slow spending on data center development. Analysts noted that while these concerns exist, strong investment in data centers and solid corporate earnings may help offset them. John Plassard, head of investment strategy at Cité Gestion, said, "Concerns about a potential tightening of AI regulations have not disappeared, but they appear to be offset for now by robust investment in data centers and resilient corporate earnings."
Background
Chip stocks underperformed, with Siltronic down 7.3%, ASML losing 2.4%, and Soitec off 4.8%. Asian tech stocks also faced declines, and U.S. Nasdaq futures fell 0.7%. In contrast, France’s Legrand gained 5.5% after raising its 2026 sales growth forecast, citing strong demand for data centers.
The gains in the Stoxx 600 are likely to influence European stocks, especially in the mining sector. The underperformance of tech stocks could weigh on investor sentiment in that area.
Watch for further developments on U.S. fiscal policy and potential regulatory changes affecting the tech sector in the coming weeks.
Based on reporting by: businesstimes.com.sg, irishtimes.com