European Markets Steady As Semiconductor Gains Offset French Political Shake-Up

European stocks stabilized with semiconductor rallies balancing losses from French political upheaval. French markets suffered steep declines following Prime Minister Sebastien Lecornu's resignation, impacting luxury stocks and banks. Meanwhile, AMD's deal with OpenAI buoyed semiconductor shares, and JPMorgan upgraded euro zone equities, citing improved attractiveness and policy support.

European markets began the week on a steady note, recovering from earlier setbacks caused by political uncertainties in France. The unexpected resignation of French Prime Minister Sebastien Lecornu had initially sent shockwaves through the markets, dragging French stocks down significantly.

This turmoil coincided with a rally in semiconductor stocks after a notable supply agreement between AMD and OpenAI, fueling optimism in the tech sector. The pan-European STOXX 600 index closed flat but had reached an intraday high, attributable to a prior week's gain.

With France grappling with political instability and fiscal concerns, JP Morgan's upgrade of the euro zone to "overweight" reflects newfound investor confidence amidst fluctuating markets. Additionally, oil and gas shares tracked higher on modest OPEC+ production plans, further balancing the economic landscape.

(With inputs from agencies.)