European Chip Stocks Soar Amid Microsoft's AI Investment

European shares climbed on Monday, led by strong performances from chip stocks following Microsoft's substantial AI investment announcement. This rise came at the start of a week dense with significant global economic data releases. The STOXX 600 index increased 0.2%, largely due to invigorated semiconductor demand and technology sector gains.

European shares rose on Monday, bolstered by gains in chip stocks after Microsoft announced a major investment in artificial intelligence, setting the stage for a week brimming with economic data from around the globe.

The STOXX 600, Europe's leading index, climbed 0.2% by 0918 GMT, following Friday's positive performance on Wall Street. The technology sector spearheaded the increase, with chipmakers like ASML, ASMI, and STMicroelectronics leading the charge, buoyed by Microsoft's $80 billion pledge towards AI and cloud infrastructure.

Notably, food and beverage stocks continued their decline after the U.S. surgeon general's proposal for cancer warnings on alcoholic beverages. Eyes remain on this week's economic indicators, including Europe's inflation readings and the critical U.S. nonfarm payrolls report, highlighting ongoing concerns about the economic outlook as European markets trail behind their U.S. counterparts in growth.

(With inputs from agencies.)