European Stocks Surge on Labour Party Victory and Tech Sector Boom

European stocks hit one-week highs following the Labour Party's electoral win, alleviating investor concerns. The STOXX 600 climbed 0.4%, while the FTSE 100 and FTSE 250 saw notable gains. Tech stocks excelled, driven by Aixtron's strong orders and Samsung's profit surge, with Varta rising on potential Porsche investment talks.

European stocks rose to more than one-week highs on Friday after the Labour Party's return to power in the UK general election gave investors a sense of calm, while German chip systems manufacturer Aixtron rallied on reporting strong orders.

The pan-European STOXX 600 index was up 0.4% by 0721 GMT, touching its highest level since June 26. The UK's blue-chip FTSE 100 added 0.3% and the domestically oriented FTSE 250 jumped 1% to one-month highs after the Labour Party surged to a landslide victory in a parliamentary election on Friday, ending 14 years of often tumultuous Conservative government.

European tech stocks topped sectoral performance on Friday with a 0.9% rise. Aixtron rallied 15.5% to the top of STOXX 600 after the company reported a strong order intake in the second quarter.

Other chip firms including ASM International, BE Semiconductor and ASML Holding climbed 0.6%-1.1%, spurred by Samsung's prediction of a 15-fold surge in second-quarter operating profit. Varta jumped about 27% after the German battery maker said it is in talks with Porsche over a potential investment in its large-format lithium-ion battery business.