The technology sector spearheaded the rally with a 1.7% gain, as confidence returned to chipmakers. BE Semiconductor jumped 5.6% following a rating upgrade from Berenberg, while Soitec, Aixtron, ASML, and Infineon posted gains between 1.3% and 5.1%. This momentum reflects growing conviction that AI-driven demand can justify current valuations, a sentiment echoed by UBS Global Wealth Management analysts who noted that firms are successfully executing their strategic plans.
Industrial performance provided further support, with the aerospace and defense sector rising 1.8% and mining stocks climbing 2.6% on stronger metal prices. Bayer shares also gained 3% after the pharmaceutical group delivered an unexpected 1.9% rise in quarterly operating profit.
Not all sectors shared the optimism. Lufthansa shares plummeted 10.6% after the airline warned of shrinking annual profits, citing fuel costs driven by the Middle East crisis. Retailer Zalando saw a steeper 16.8% slide, trailing the STOXX 600 index after lowering its growth and revenue forecasts. Despite these specific corporate setbacks, the broader market appears to be decoupling from the volatility surrounding energy supply fears, signaling a shift toward internal growth indicators.
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