STOXX 600 rises on tech strength; oil and bond yields remain a drag

European shares climbed on Tuesday, supported by technology stocks, although higher crude prices and elevated bond yields capped broader gains. The pan-European STOXX 600 was up 0.3% ‌at 640.28 points by 0830 GMT. Most other regional indexes also traded modestly higher.

Technology shares led sectoral gains, rising to their highest level in a month. Semiconductor stocks advanced after Reuters reported Anthropic is making a major bet on AI transforming the global economy, ‌with public investors expected to help fund that expansion through a planned stock market listing. The public offering is ‌expected to value the company at more than $2 trillion. "The prospectus has brought back to the forefront excitement surrounding the IPO trade, which struggled recently after these AI companies called for a slowdown," said Fiona Cincotta, senior market analyst, StoneX.

Earlier this month, executives from several major AI companies urged a slower ⁠pace of ​development over concerns about misuse, ⁠weighing on technology stocks already pressured by rising bond yields. Global bond yields remain near multi-decade highs as investors grapple with inflation risks from rising energy ⁠costs. Oil prices climbed as the lack of a breakthrough in the Middle East conflict kept Brent crude futures at $106.99 a barrel.

European ​economies are particularly vulnerable to surging energy prices because of their reliance on fuel imports. European Central Bank President ⁠Christine Lagarde said on Monday that this year's inflation surge has yet to generate significant second-round effects across the euro zone, suggesting a measured policy response ⁠remains ​appropriate. The ECB raised interest rates earlier this month.

Among individual stocks, Lindt slipped roughly 7% to become the STOXX's biggest decliner. Shares fell after the Swiss chocolatier cutits 2026 sales forecast for the second time this year, citing subdued ⁠consumer sentiment, rising price sensitivity and weak demand during a European heatwave. Peers Barry Callebaut and Nestle also came under pressure. On the ⁠flipside, Julius Baer was ⁠the top gainer, up 7.7% after Switzerland's financial regulator FINMA closed enforcement proceedings over private debt loans and client ties to two "politically exposed" Russian individuals.

Shares of Legrand advanced 7.3% after the ‌French electrical and digital ‌building infrastructure group raised its medium-term targets.