Tech Gains Overshadowed by Middle East Tensions

European shares were largely stagnant, driven by a rise in tech stocks like ASML, but overshadowed by escalating Middle East tensions. Pan-European STOXX 600 dipped slightly, with Germany's benchmark underperforming due to software stock drops. Meanwhile, Richemont saw gains thanks to strong jewelry demand.

On Wednesday, European shares remained largely unchanged as the technology sector experienced gains, yet worries over rising tensions in the Middle East held the market back.

The pan-European STOXX 600 index fell slightly by 0.1% to 641.07 points as most sectors struggled. Technology stocks rose by 1.4%, spurred by ASML's impressive 6% climb following enhanced financial forecasts for 2026, reaffirming confidence in AI demand.

However, concern persists over the sustainability of the AI boom's high expectations, impacting other sectors like software, where Germany's market share fell nearly 1%, burdened by SAP's decline.

In contrast, Richemont, benefiting from strong jewelry sales, advanced 5.3% amid tension-induced high oil prices linked to Iran-U.S. conflicts.