Global Markets: European stocks rise as STMicroelectronics' forecasts lift tech stocks

European shares opened higher on Tuesday as strong forecasts from chipmaker STMicroelectronics lifted technology stocks, while investors awaited a key inflation report later in the day for ‌insights into ⁠how ⁠the Mideast conflict has affected the euro zone economy.

The pan-European STOXX 600 index rose 0.7% to 625.20 points by 0715 GMT. Technology stocks led sectoral gains with a 2.4% rise.

Chipmaker STMicroelectronics rose 9.8% to hit 65.1 euros, its highest since September 2000, after lifting revenue targets for its data centre business, signalling ⁠strong demand from ‌the AI boom.


Other AI-related stocks such as Infineon and Schneider Electric added 5.2% and 2.4%, respectively.

Lebanon announced ⁠a partial ceasefire between Hezbollah and Israel on Monday following a brief escalation of hostilities, which also aided risk sentiment.

Crude prices eased about 1% as investors pinned hopes on U.S. President Donald Trump's remarks that talks with Iran were ongoing, despite a report saying that Tehran had suspended indirect negotiations with Washington.

Still, at $94 a barrel, energy prices ‌will likely remain painful, analysts said.

A report on euro zone consumer inflation, due later in the day, is expected to show consumer ⁠prices rose 3.2% in May on an annual basis from the month before.

Traders expect the European Central bank to hike interest rates by 25 basis points when it meets next week, according to data compiled by LSEG.

Among individual shares, Abivax fell 27% after the French drugmaker published the late-stage trial results for its inflammatory bowel drug.