European Shares Surge As Tech Stocks Rally On AI Optimism

(RTTNews) - European stocks were moving higher on Tuesday as technology stocks rebounded amid renewed optimism surrounding AI.

Meanwhile, with oil prices moving back to pre-war levels, markets remain hopeful that the European Central Bank (ECB) will not raise interest rates in the near term.

ECB Chief Economist Philip Lane said in Sintra, Portugal, today that the second-round effect from higher energy prices is probably going to take some time to show up and that policymakers won't lock themselves into a path for interest rates in the meantime.

Oil prices traded lower and headed for a second month of declines despite clear divergences emerging in the statements from both sides regarding whether the U.S. and Iran would hold talks in Qatar today.

The pan European Stoxx 600 jumped 0.6 percent to 639.82 after ending marginally higher on Monday.

The German DAX surged 0.9 percent, France's CAC 40 was marginally higher and the U.K.'s FTSE 100 advanced 0.4 percent.

The British pound edged lower against the dollar, giving away earlier gains after revised data from the Office for National Statistics confirmed that the U.K. economy expanded as initially estimated in the first quarter, primarily driven by services activity.

Gross domestic product grew 0.6 percent sequentially in the first quarter, following a revised 0.1 percent expansion seen in the fourth quarter.

Technology stocks like Infineon, STMicroelectronics and ASML Holding were up 2-3 percent.

French drugmaker Sanofi was little changed after announcing its Nexviazyme met all primary and secondary endpoints in a Phase III study in the infantile form of Pompe disease.

British travel and insurance company Saga plunged 7.5 percent after saying trading remained "in line with expectations" in the first four months of the year.

Supermarket chain J Sainsbury rallied 2 percent after keeping its full-year profit outlook unchanged.

International Workplace Group surged nearly 3 percent. The flexible workspace company announced a $50 million increase to its 2026 share buyback program.