Key Points
- European stock markets rose, with technology stocks leading the rebound; the STOXX 600 rose 0.58%.
- Chipmakers such as ASM International and ASML gained amid eased U.S.-China chip export concerns.
- France’s CAC 40 recovered 0.56% despite rising political instability and budget challenges.
- Spain’s inflation rose to 2.4% in November; Germany’s data is awaited for ECB insights.
European stock markets opened higher on Thursday, with technology stocks leading the rebound after two days of declines driven by economic and political concerns in France and U.S. tariff uncertainty. 9:30 AM GMT (04:30 ET), the pan-European STOXX Europe 600 index rose 0.58% or 2.92 to 507.88, as investors focused on key inflation reports and rate-cut prospects.
Major chipmakers, including ASM International NV (AMS:ASM) rose by 3.29% or 16.30 to 511.20 EUR, BE Semiconductor Industries NV (AMS:BESI) gained by 5.12% or 5.55 to 114.00 EUR, and ASML Holding NV (AMS:ASML) increased by 4.08% or 25.50 to 653.20 EUR. Their shares climbed approximately 4%, significantly boosting the broader market.
France’s CAC 40 index rose 0.56% or 39.98 to 7,183.01, recovering slightly after hitting its lowest levels since August in the previous session. However, the French political landscape remains fragile. Prime Minister Michel Barnier faces mounting challenges to secure approval for the 2025 budget in a divided parliament. A recent poll revealed that 53% of French citizens favor the government’s collapse, increasing uncertainty for the nation’s economic policy direction.
Spain’s preliminary inflation data for November rose to 2.4%, up from 1.8% in October, aligning with market expectations. Investors are awaiting Germany’s inflation report, which will offer further insight into the European Central Bank’s stance on rate adjustments.
In the UK, Direct Line Insurance Group PLC (LON:DLG) surged over 40.89% or 64.90 to 223.60 GBX in early trading after rejecting a £3.28 billion ($4.16 billion) acquisition proposal from competitor Aviva (LON:AV). The move reflects Direct Line’s confidence in its strategic direction and valuation.
