European stocks moved higher on Thursday as lower oil prices and renewed strength in technology shares improved market sentiment.
The STOXX 600 rose in early trading, while major European markets including London, Frankfurt, Paris and Milan also gained. The move followed a pullback in crude prices, which eased some concern about inflation and the pressure higher energy costs can place on companies and consumers.
Oil had been a major focus after recent tensions in the Middle East lifted concerns about supply disruption. Its retreat helped markets reassess near-term risk. Lower energy prices can support margins for companies with high transport, production or input costs, while also reducing pressure on household spending.
Technology shares were another important driver. Strong guidance from Micron revived interest in semiconductor and artificial intelligence-related stocks, helping the sector rebound. European chip and equipment names including ASML, Infineon, STMicroelectronics and BE Semiconductor moved higher as confidence returned to companies tied to AI demand.
Even after concerns about valuations, the market continues to respond quickly when major companies in the chip supply chain point to stronger demand. Semiconductor equipment and component makers are closely linked to expected spending on data centres, computing power and advanced technology infrastructure.
Energy shares faced a different setup. Lower oil prices helped the broader market but reduced support for companies exposed to crude prices, including major oil producers. That created a clear split in the session, with lower energy costs helping sentiment overall while limiting enthusiasm for parts of the oil and gas sector.
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