European Markets Recover Amid Bank and Healthcare Gains, Tech Falls

European shares saw a slight rise, with banks and healthcare companies offsetting tech losses. HSBC and Banco Santander led bank gains. A defensive trading tone emerged as technology stocks dipped, impacted by potential U.S. semiconductor restrictions on China. British defense spending plans influenced market sentiment.

European stock markets closed with a modest increase, driven by strong performances in the banking and healthcare sectors, counteracting declines in technology shares. The STOXX 600 index finished the day up by 0.2%, despite broader challenges across tech-related stocks.

HSBC and Banco Santander were significant contributors to the banking sector's rise, pushing the banks' index to levels not seen since October 2008. The healthcare sector also posted gains, with Novo Nordisk and Smith+Nephew seeing a respective 2.8% and 6.1% increase following positive annual sales and profit reports.

Meanwhile, technology stocks faced a sell-off, influenced by a report of the U.S. planning tighter semiconductor restrictions on China. Miners also dropped, declining by 1.8%. In the UK, political promises of increased defense spending provided a fiscal stimulus hope, while the German economy faced contraction worries with a 0.2% GDP drop in Q4 2024.

(With inputs from agencies.)