European shares moved higher at the end of the quarter as softer inflation signals, stronger technology stocks and renewed interest in selected financials supported market sentiment. The STOXX 600 traded close to record levels, while several major regional markets also gained ground as attention turned to central bank commentary and upcoming economic data.
Early readings from Germany, France and Italy suggested price pressures were easing, reducing some concern that recent energy market volatility could force central banks to keep policy tighter for longer. Lower bond yields helped improve sentiment towards banks and other rate-sensitive areas of the market.
Technology shares were a key source of strength. ASML, Infineon Technologies and STMicroelectronics rose as semiconductor names recovered, helped by stronger interest in companies linked to artificial intelligence, automation and data centre demand. Industrial names including Siemens, Schneider Electric and ABB also gained, showing that the market is still rewarding businesses tied to power infrastructure, electrification and long-term digital investment.
Italy remained one of the stronger markets in Europe. Milan gained during the session, supported by banking shares and ongoing interest in deal activity across the sector. The Italian market’s relative strength has made it one of the region’s more closely watched areas, with banks benefiting from earnings resilience, capital return expectations and consolidation prospects.
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
