European Shares Soar: AI Optimism and Easing Middle East Tensions Fuel Rally

European shares opened higher on Tuesday, poised for the largest quarterly rise in over five years. The rally is driven by robust demand for AI infrastructure, easing Middle East tensions, and strong technology sector performance. Travel, leisure stocks also rebounded. Investors focus on European Central Bank conference for monetary policy insights.

European shares opened higher on Tuesday and were on track for their biggest quarterly rise in over five years, bolstered by optimism surrounding artificial intelligence and signs of easing tensions in the Middle East.

The pan-European STOXX 600 index gained 0.6% to 639.79 points by 0857 GMT, nearing a record high. Technology stocks rose 1.7%, set for their largest quarterly jump in over two decades, indicating a strong demand for AI infrastructure. This sector is outpacing its Wall Street counterparts this month and quarter.

Chip equipment maker ASML increased by 3.3%; chipmakers STMicroelectronics and Infineon gained 2% and 2.3%, respectively. Siemens Energy's shares surged 4.8%, reflecting robust demand trends. Global equities, led by U.S. and Asia, are rallying on AI enthusiasm with Europe catching up. Easing Middle East tensions and declining oil prices have also driven European stocks up.