European Shares Surge Amid SAP's Success and Easing Trade Tensions

European shares reached a near three-week high, driven by robust earnings from SAP and reduced trade tensions between the U.S. and China, boosting global investor confidence. The STOXX 600 index climbed 1.8%, with Germany's SAP rising 10.6%, supporting a broader lift in the European technology sector.

European shares experienced a notable rise, approaching a three-week peak on Wednesday, supported by impressive earnings from SAP, Europe's largest software maker. This came amidst reduced trade tensions between the United States and China, fostering a positive sentiment among investors globally.

The pan-European STOXX 600 index increased by 1.8%, with Germany's leading index outperforming domestic counterparts, climbing 3.1%. SAP saw a remarkable surge of 10.6%, marking its best day in six years after surpassing analysts' profit expectations for the first quarter. This positively impacted the European technology sector, which rose 3.9%.

The basic resources sub-index also saw significant gains, jumping 3.3% due to rising base metal prices, such as copper. This follows easing worries about U.S.-China trade tensions, with reports suggesting the Trump administration may consider lowering tariffs on Chinese goods. Despite the optimism, uncertainty over U.S. tariffs continues to cloud the outlook for European corporate health, with expected first-quarter earnings dropping by 3.5%, the weakest in two years.

(With inputs from agencies.)