European Shares Rally on Tech Surge Amid U.S. Interest Rate Speculation

European stocks climbed as technology shares led gains, fueled by speculation of a U.S. interest rate cut. Progress on the Ukraine peace talks further lifted market sentiment. The STOXX 600 index highlighted this positive trend, despite ongoing challenges like defense stock losses and mixed responses in various sectors.

European shares rose on Monday, with technology stocks driving the upward momentum as market sentiment improved amid growing expectations of a U.S. interest rate cut next month. Developments in the Ukraine peace plan also captured investors' attention, adding to the positive market vibe.

The pan-European STOXX 600 gained 0.31% to close at 563.83 points, recovering from its sharpest weekly fall since July. This revival was supported by positive cues from Wall Street, following dovish remarks from U.S. Federal Reserve official John Williams, who hinted at potential rate cuts "in the near term."

Technology stocks led the gains in the STOXX 600, notably benefiting from AI-related investments. ASML and Infineon saw significant increases, contrasting with the struggles of defense stocks which slipped amid ongoing U.S.-Ukraine peace negotiations. Meanwhile, sectors like travel, leisure, and basic resources saw gains, reflecting investor optimism across diverse industries.

(With inputs from agencies.)