- The pan-European Stoxx 600 index closed up 0.88% on Tuesday, with a quarterly gain of 10.00%, marking its best quarterly performance since October 2020, and also hitting a record high during the session.
- The technology sector rose 2.50% in a single day, recording the largest quarterly gain since October 2001, highlighting the strong global demand for the underlying infrastructure of artificial intelligence.
- With signs of easing tensions in the Middle East and international oil prices fluctuating downward, the previously pressured travel and leisure industry rebounded, with a quarterly gain of over 19.00%.
Strong Performance of Technology Heavyweights
Chip equipment manufacturer ASML closed up 6.79%, while semiconductor manufacturers STMicroelectronics and Infineon recorded gains of 1.43% and 4.38%, respectively. Additionally, AI equipment supplier Siemens Energy saw its stock rise by 5.60% after reaffirming strong demand trends, further solidifying market optimism about the technology hardware cycle.
Valuation Opportunities Emerge
Investment institutions point out that compared to the highly valued U.S. tech stocks or Asian semiconductor sectors, European-related assets offer better value while providing growth potential. This unique asset characteristic provides value investors with allocation opportunities, with relatively low risk of earnings revaluation.
Geopolitical Easing Boosts Industry Recovery
The easing of tensions in the Middle East has pushed oil prices back to pre-conflict levels, prompting institutions like Barclays and JPMorgan to upgrade their ratings on European stock markets. As a result, travel and leisure stocks recorded their largest quarterly gain since January 2023, becoming a major support for the broader market alongside technology.
Central Bank Policy and Rate Hike Pricing
Currently, the market is focused on statements from officials at the European Central Bank's annual meeting, with policymakers warning that the subsequent impact of external price shocks on the economy may persist. According to data compiled by the London Stock Exchange Group, swap market traders currently expect European interest rates to have room for another 25 basis point increase by the end of the year.
