European shares edge higher as ASML's AI demand outlook boosts tech

European shares inched up on Wednesday, recovering from modest ‌losses in the previous session, as strong results from ASML lifted the technology sector.

The pan-European STOXX 600 index was up 0.32% to 636.99 ‌points by 0713 GMT, after pulling back from a ‌one week-high on Tuesday. The world's biggest supplier of chipmaking equipment, ASML , rose 1.8% after saying that AI-driven demand for its chip-printing tools is so strong that ⁠it ​will not ⁠be able to fully meet customer demand in 2027 or 2028.

It said it ⁠was looking at ways to expand capacity as it raised its ​full-year sales outlook. The technology sector added 0.8%, leading sector wise gains.

Denting ⁠risk appetite on the other hand, oil prices climbed after two vessels ⁠were ​struck in the Strait of Hormuz. Among other movers, Orsted dropped 4.2% after Bloomberg News reported the US would re-evaluate ⁠the permit for its Rhode Island wind farm.

Investor focus will also ⁠turn to ⁠US consumer price index (CPI) data later on Wednesday for clues on the Federal Reserve's monetary policy ‌outlook.