Defence Stocks Rise Amid U.S.-China Tech War Fears

European shares remained steady as rising defence stocks counterbalanced the fall in technology stocks, which were affected by concerns over an escalating U.S.-China technology conflict. Notable declines hit semiconductor and AI-exposed stocks, while defence stocks saw gains due to potential increased German military spending.

European shares held steady on Tuesday as an increase in defence stocks helped balance out a downturn in technology stocks, which were impacted by worries over the growing U.S.-China technology conflict.

The STOXX 600 index gained 0.07% at around 0816 GMT. Technology stocks, however, dragged it down by 0.9%, as the U.S. prepares to intensify semiconductor restrictions on China.

Counterbalancing the tech downturn, the defence sector saw gains, powered by Germany's reported moves towards approving a vast defence spending plan, boosting shares in German arms manufacturers.