European shares were steady on Monday, underpinned by gains in technology stocks, while investors mulled over the outlook of a fragile ceasefire in the Middle East after the United States and Iran agreed to halt the latest bout of hostilities.
Market Overview
The pan-European STOXX 600 index held its ground at 636.13 points by 0709 GMT, with technology stocks leading sectoral gains with a 1.1% rise. Nagarro soared 90% after India’s Persistent offered €81 per share to acquire the AI-led digital engineering firm.
The broader tech sector rose after last week’s selloff, which marked the sector’s biggest weekly fall since mid-March. The STOXX index ended the previous week flat after concerns around ballooning valuations in the AI sector, and expectations that central banks will lift interest rates to combat energy price-induced inflation pressures weighed on riskier assets and spurred a bout of market volatility.
Iran and the United States traded fire through the weekend before agreeing to halt hostilities and renew talks. Crude prices edged up 0.6% at $72 a barrel as investors assessed crude shipments through the Strait of Hormuz in the face of a tenuous interim ceasefire prevailing between both parties.
However, a holding ceasefire has prompted bullish outlooks from brokerages. J.P. Morgan was the latest to lift its year-end target for European equities, citing corporate earnings strength and improvements in the geopolitical climate.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
