European stocks rise as technology sector offsets oil price gains

European shares rose on Tuesday as gains in the technology and mining sectors drew attention away from new attacks in the Middle East, which pushed oil prices higher, as investors weighed a fresh round of corporate earnings reports.

Brent crude jumped more than 2.5% after US forces struck targets in southern and western Iran overnight.

Technology stocks rose 2.1%, the largest gain in the index, with shares of ASML and ASMI rising 5.4% and 4.7%, respectively. Earnings from major US tech firms, such as Alphabet, the parent company of Google, will be in focus this week in search of signs regarding the sustainability of demand linked to artificial intelligence and whether their valuations can be justified.

Fiona Cincotta, chief market analyst at City Index, said: “We have seen these swings in sentiment... which highlight the type of tension surrounding the technology sector, particularly artificial intelligence and chip trading.”

She added, “If we see another strong season, it could actually serve as a catalyst for a new rise in technology stocks.”

The mining sector rose 1.7%, following increases in copper and gold prices, despite a 5.7% drop in shares of Swedish mining company Boliden after it reported weaker-than-expected adjusted quarterly operating profits.

Focus will now turn to statements by policymakers at the European Central Bank during its expected monetary policy meeting on Thursday, where interest rates are anticipated to remain unchanged. However, data from the London Stock Exchange Group indicates that market participants expect at least one rate hike of 25 basis points by the end of 2026.

In the UK, newly appointed Prime Minister John Healey named former Defense Secretary Andy Burnham as Chancellor of the Exchequer, just weeks after Burnham resigned from the previous government and criticized the Treasury’s shortcomings in defense spending.