Stocks in Euro Area Hit All-time High

European equities edged up on Tuesday as easing crude prices reduced some of the pressure on inflation and markets became less concerned about an imminent ECB rate increase. The Stoxx 50 gained 0.4%, while the Stoxx 600 was little changed, with technology stocks providing much of the momentum. ASML was a standout performer, jumping 4%. Energy companies instead weakened as Brent crude slipped toward $104 a barrel following the restart of Saudi Arabia’s key oil-export pipeline. In Switzerland, Julius Baer surged 7% after Finma closed its enforcement proceedings, clearing the way for the bank to seek approval to restart its share-buyback programme. Lindt & Sprüngli dropped 8.4% after lowering its sales-growth outlook for the second time this year.

European stocks rose for a third consecutive session on Tuesday, with the STOXX 50 gaining 0.5% and the STOXX 600 advancing 0.7%. Investors continued to look past higher oil prices and the standoff between the US and Iran, while bond yields remained at multi-year highs. The technology sector was among the top performers, led largely by semiconductor stocks, following a Reuters report that Anthropic is making a major bet on AI transforming the global economy and that public investors will help finance its expansion. ASML Holding (2.8%), STMicroelectronics (2.5%), Schneider Electric (2.3%), Infineon Technologies (2%) were among the top gainers. Also, Legrand soared 5.8% after raising its medium-term targets. On the other hand, industrials and the food & beverages sector were under pressure. Vinci (-3.3%), Ocado (-3.2%), Vestas (-3.4%) and ThyssenKrupp (-2.9%) bottomed the STOXX 600.

European equity markets were set for a positive open on Tuesday even as rising oil prices continue to fuel inflation and rate hike concerns. Global bond yields also remained at multi-year highs, with the benchmark Euro Area 10-year yield holding at 3.64%, its highest level since 2009. Meanwhile, investors will assess Spanish inflation and retail sales, Italian PPI, and Eurozone economic sentiment data. In corporate developments, Julius Baer Group said Finma has closed its regulatory enforcement case against the bank, which has also sought approval for a new share buyback program. Separately, Chocoladefabriken Lindt & Spruengli lowered its sales-growth outlook for the second time this year, pointing to softer demand across key markets and weaker consumer confidence. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were both up around 0.2%.