European Stocks Close Higher for 2nd Session

European stocks closed sharply higher for a second session on Thursday with support from corporate earnings and fresh geopolitical developments. The Eurozone's STOXX 50 closed 1.2% higher at 5,931 and the STOXX 60 added 0.7% to 616. Constructive rhetoric came out of the summit between US and Chinese presidents Trump and Xi in the first days of talks, limiting concerns of disruptions that were initially triggered by trade disputes last year. Tech companies closed with sharp gains as the positive dialogue between US tech leaders and the Chinese delegation raised expectations of a higher demand pool for AI infrastructure, driving ASML and Infineon to gain 5.5% and 3%. Meanwhile, Siemens added 2.6% to extend the strong momentum after its earnings.

European stocks edged higher on Thursday, with both the STOXX 50 and the STOXX 600 gaining 0.3% and extending the previous session’s gains, as investors digested political developments and a fresh wave of corporate earnings. Market attention centred on the two-day summit between US President Trump and Chinese President Xi, where discussions are expected to cover Taiwan, Iran and AI. In the UK, pressure continued to mount on Prime Minister Starmer amid growing calls for his resignation. Meanwhile, enthusiasm around AI remained strong after Cisco delivered a stronger-than-expected sales outlook. ASML Holding (0.8%), Novartis (0.8%), AstraZeneca (0.7%), SAP (0.9%) booked gains and Siemens was up almost 3% as the company said it plans to acquire several core business units from Mermec Group. Telefonica also soared more than 5% after beating a profit forecast. On the other hand, 3i tumble almost 19% to bottom the STOXX 600 after warning that sales growth at Action had slowed sharply.

European equity markets were set to open higher on Thursday, building on the previous session’s gains as investors responded to stronger-than-expected growth in the British economy during the first quarter, before the full effects of the Iran war began to weigh on activity. Still, political uncertainty in the UK remained elevated, with Prime Minister Keir Starmer continuing to face pressure over his leadership. Investors also focused on the meeting between US President Donald Trump and Chinese President Xi Jinping, amid hopes that the two sides could improve relations despite ongoing disputes over tariffs and other sensitive issues. On the corporate side, earnings reports are expected from National Grid, 3i Group, Brenntag, Burberry and Telefonica, among others. In premarket trading, Euro Stoxx 50 futures rose 0.8%, while Stoxx 600 futures gained 0.5%.