European shares rise as miners rally, tech stocks lag

European shares opened higher on Thursday, led by gains in mining stocks, while technology shares came under pressure as investors assessed the potential impact of Democratic victories in the US midterm elections on the sector.

The pan-European STOXX 600 index rose 0.5% to 660.33 points by 0807 GMT, trading near a two-month high reached in the previous session.

The basic resources sector climbed 2.7%, supported by a 6% jump in ArcelorMittal shares after the world's second-largest steelmaker reported core profit above market expectations.


Read more: US stocks today: Dow rallies 1,500 pts, S&P, Nasdaq over 1% as Democrats win midterm elections

Investor sentiment also received support from Brent crude prices trading below $100 a barrel. Markets expect the Republicans' losses in the midterm elections could encourage US President Donald Trump to avoid further escalation of the conflict with Iran.

Technology stocks underperformed, with ASML falling 2.7% and Soitec declining 4.5%, tracking losses in Asian markets. Investors were concerned that increased scrutiny from Democrats could slow the expansion of artificial intelligence infrastructure and data centres in the United States, Reuters reported.

Read more: Asian shares mostly advance following US midterms, though Kospi falls on selling of chipmakers

Meanwhile, defence stocks came under significant pressure after Rheinmetall plunged 14%. The German defence group cut its 2026 sales forecast for the second time in three months, citing delays in securing a contract for Germany's Arminius Boxer vehicle programme and slower approvals for artillery ammunition deliveries.

The company no longer expects the vehicle programme contract to be awarded this year, while delays in ammunition approvals are expected to push back revenue recognition.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)